Questionnaire

“A Study on Capital Budgeting’’

1. Do you follow sensitivity analysis for capital budgeting?

a) Yes b) No

2. Did you follow different decision techniques for different investment

proposal?
a) Yes b)No

3. Do you think is time consuming?

a) Yes b) No

4. Which of the following method is favored by your firm in deciding investment

project to choose?
a) Net Present Value (NPV)
b) Internal Rate of Return (IRR)

5. In computing IRR or NPV your firm use?

a) Cash flows
b) Accounting income

6. Please indicate with ( ) how frequently you company employs the

following techniques in deciding investment to choose?
Method Name Frequency of use
Always Often sometimes Rarely Never

Net Present
Value(NPV)
Internal Rate of
return(IRR)
Modified Internal
Rate of return(MIRR)
Payback Period
(PBP)
Accounting Rate of
Return(ARR)
Others

7. When deciding investment opportunity, risk is always vital?

a) Yes b) No c) Not Sure

8. Do you think that rationality and adequate discount rate helps in handling the
risk?
a) Yes b) No

9. In computing IRR or NPV do your firm deduct interest and financing cost from
revenue to find out cash flows?
a) Yes b) No

10. For calculating NPV or IRR your firm use the standard model(e.g. standard
Microsoft excel model)
a) Yes b)No