AN ANALYTICAL STUDY ON CAPITAL BUDGETING TECHNIQUES IN MANGALAM CEMENT LIMITED

Pooja Baheti; Rajkumar Thathera

doi:10.55955/140003

Authors

Ms. Pooja Baheti Maharaja Ganga Singh University https://orcid.org/0000-0002-0404-820X
Dr. Rajkumar Thathera Maharaja Ganga Singh University

DOI:

https://doi.org/10.55955/140003

Keywords:

Capital Budgeting, Pay-back Period, Average Rate of Return, Net Present Value, Internal Rate of Return, Investing Decision

Abstract

Every organisation have to invest in long term assets and projects. On which project, capital will be invested, is analysed through capital budgeting techniques. Capital Budgeting Techniques are used in every firm to evaluate capital expenditure and make an appropriate decision. These decisions are very crucial for any firm's survival and growth. These decision affects firm’s profitability for long period. Once a decision is taken, it can’t be reversed.

This study was set out with aim, how capital budgeting techniques are useful to take capital investing decision in Mangalam Cement Limited. The data are collected from company's annual reports and websites. Data analysis and interpretation was accomplished through capital budgeting techniques which are traditional methods and modern methods. Modern methods are more in trend.

From this study it was found that investment in this project is feasible to execute and company’s position is good enough to diversify its capital.