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ISSN 2063-5346
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A STUDY ON CAPITAL BUDGETING WITH REFERENCE TO AJUTE INTERNATIONAL PVT LTD

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Ashwin.S1 , Dr. B.Senthil kumar
» doi: 10.31838/ecb/2023.12.s1-B.405

Abstract

The key function of the financial management is the selection of the most profitable assortment of capital investment and it is the most important area of decision making of the financial manger because any action taken by the manger affects the working and the profitability of the firm for many years to come. The objective of the research is to study on the company's forecasting decision through Capital budgeting technique through which the importance of capital budgeting in an organization and to analyze the capital budgeting process to be adopted by the company in order to take better investment decisions for various business projects. Further, it caters information about cash inflows and outflows of various years. Thus the comparison provides clear idea about investments and return on the same which can be helpful for the years to come. The analyses have been done by the data collected from income and expenditure statements and separate investment report. Capital budgeting techniques like Net Present Value method, Rate of Return method and Payback Period method are used to analyze the collected data. Some other forecasting tools like standard deviation, Correlation analysis and trend analysis are used in this study

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