A Study on Capital Budgeting Techniques at Maha Cement Pvt Ltd.
The study analyzes the long run future cash flows by using Discounted methods like Net Present value method (NPV), Internal Rate of Return (IRR), Profitability Index (PI), and Non –Discounted cash flow techniques like Pay Back period (PBP) and Accounting Rate of Return (ARR) in detail from the year 2013 -14 to 2017-18 at Managements to understand long term financial decisions and to select the right investment for higher profitability. Determining the quantum of funds and the sources for procuring them is another important objective of capital budgeting. Finding the balance between the cost of borrowing and returns on investment is an important goal of Capital Budgeting. An organization needs to first identify an investment opportunity. An investment opportunity can be anything from a new business line to product expansion to purchasing a new asset. For example, a company finds two new products that they can add to their product line.