Dissertation on capital budgeting

Contingent projects may be complementary or substitutes ibid. In general, European CFOs seem to have a higher level of education.

a study on capital budgeting project pdf

Strategic planning translates the firms corporate goal into specific policies and directions, sets priorities, specifies the structural, strategic and tactical areas of business development, and guides the planning process in the pursuit of solid objectives, Daft Next, it discusses the outcomes related to the answers to the questions on capital budgeting practices, focusing on the use of different capital budgeting techniques and methods used to estimate cost of capital and equity.

Inthe picture had changed drastically: DCF methods were used by 57 per cent of the companies; 26 per cent used ARR and only 12 per cent used PB as their primary method of project evaluation ibid.

The questionnaires were sent to Europe and West African listed and non-listed companies in the period between August and January At the same time, however, the results suggest that the differences between European and West African companies is smaller than might have been expected based upon the differences in the level of economic development between both economic blocs.

The same set of questions was sent to European and West African companies.

Dissertation on capital budgeting

In total, I included only fifteen questions. Determinan saldo kas akhir tahun pada pemerintah daerah di Aceh This research examines the effect of the government size, rebudgeting, previous year cash balance, and budget absorption on end-year cash balance of local governments in Aceh for periods. Secondary data were extracted from local Consequently, if the firm establishes both restaurants, the Chinese restaurants cash flows are likely to be adversely affected. The results of these tests show that for larger companies the mean score for the NPV method is significantly higher at the 5 per cent level than for smaller companies. West Africa and Europe have been chosen for this comparison for the following reasons. Many countries in the third world borrowed huge sums of money in expectation that interest rates would remain stable. Notwithstanding, however, the researcher believes that these debt-ridden nations in the Sub-Saharan Africa are expected to make attempts at improving their economic status themselves through huge research and development leading into economic productivity. African scholars have tended to heap the blame on the Europeans; saying that colonialism or neocolonialism is the bane of Africas economic woes. In some cases, however, those qualitative factors which affect the project benefits may have such a negative bearing on the project that an otherwise viable project will have to be abandoned. The majority of companies used either PB 34 per cent of the total sample or ARR methods 34 per cent as their primary method of evaluation. This resulted in various mismanagement and failure to achieve economic heights.

Many projects move from donor countries like the United Kingdom and the United State into Africa to help improve the lives of the people.

This implies that todays investment will determine the overall corporate strategic position over many years.

Capital budgeting research methodology

Dayananda et al suggested that the preliminary screening may involve some preliminary quantitative analysis and judgements based on intuitive feelings and experience. Capital investment decision is thus one of the requirements, if properly applied, that can help accelerate economic development. Investments are well scrutinised using various sophisticated techniques, both qualitative and quantitative, before final decision is arrived and such projects are well monitored until fully completed. The researcher is also aware of study on Capital Budgeting and Economic Development in the Third World Countries Elumilade, et al but there were no comparisons with any developed economy. In the course of achieving these development efforts, the companys activities become more complex and corporate management assumes a sound financial position in the handling of problems and decisions therein. Thus making it difficult for them to earn their way out of the debt trap. Kester, et al. Again, only very few papers have addressed the determinants of capital budgeting practices using these types of analyses, let alone in a comparative economic perspective. Finally, I would like to thank my Administrative Director, Mr. These differences might be due to the level of education, technology and economic development between the two economic blocs. This conclusion suggests that, though not abundant, investment opportunities with high returns exist in African countries and when applied properly, it could bring economic growth to Africa. Firm size is included because some papers have argued and indeed found evidence for the fact that larger companies are more inclined to use more sophisticated capital budgeting techniques Payne, et al. In a recent paper by Kester, et al. Strategic planning translates the firms corporate goal into specific policies and directions, sets priorities, specifies the structural, strategic and tactical areas of business development, and guides the planning process in the pursuit of solid objectives, Daft
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