Different firms used different techniques of capital budgeting like manufacturing firms used new techniques &trading firms

used traditional techniques. In our survey JK tyre always used NPV (Net Present value), IRR (Internal Rate of Return), while Aditi computers ltd. always used pay back method &almost used IRR. Some manufacturing firms are not using these techniques like. Both JK tyre &Aditi computers Ltd. says that while valuing a new project they adjust the discount rate because of interest rate risk factor. Aditi computers said gave reason for this reason that they mainly focus on interest rate for any new project, while JK tyre said that they have to focus on interest risk factor as well as foreign exchange factor. On foreign exchange factor they said that because they have international operations so they have to think about foreign exchange rates before valuing any project. Both Aditi computers ltd. & JK tyre said that their first important goal is always maximize shareholder wealth and cost control efficiency. Factors for financing the capital of firm according to JK tyre they always go for cost of borrowing & almost always go for past experience, cost of equity, & weighted average capital. For these factors they said that they always prefer cost of borrowing because in borrowing they have to pay interest which is tax free & cost of equity in this they have to pay dividend and it has no other benefits. On the other hand Aditi computers ltd. almost always go for cost of borrowing & past experience and they never use cost of equity & weighted average. For these factors they said that they are medium size private ltd.company they have no equity shares if any capital required borrowing is best option for it.