Investment Decisions:Business Practices of Indian Corporate World

Abstract

Capital budgeting decisions have significant impact on the bottomline of any business enterprise as they have a decisive influence on its existence and growth. The fixed assets are real earning assets of a company. Any lapse in capital expenditure decisions may create stake for the survival of a business enterprise. It is one of the top management's most crucial tasks to see that a company puts in due attention to the question of how a company shall use its long term funds. This research paper is an attempt to evaluate the use of capital budgeting methods in the corporate sector in India. The study reveals that though PBP is still a very popular technique of capital budgeting, firms are now using multiple criteria in selecting capital budgeting projects.