QUESTIONNAIRE

The questionnaire is intended to generate information from business

Organizations in order to analyze and understand the criteria for

evaluating the risks associated with the investment decision made

under Capital Budgeting.

1. When deciding on an investment opportunity, risk consideration is always vital.

 Yes  No  Not Sure

2. Evaluating investment decisions based on capital budgeting is not easy as the

process itself is based on a hierarchy.

 Yes  No  Not Sure

3. Exploring and evaluating the alternatives course of actions available is easier

for you.
 Yes  No  Not Sure

4. Is implementation and control to achieve the target is always the way the

think tanks has thought of in first place.

 Yes  No  Not Sure

 5. For your firm an average rate of return and simple

payback methods effectively deal with the opportunity cost

concept associated with investment decision.

 Yes  No  Not Sure

6. For time bounded projects and from execution point of

view NPV technique for estimating capital budgeting is more

significant in nature.

 Yes  No  Not Sure

7. NPV concept focuses on opportunity cost and helping to

take risk in account and thereby covers uncertainty f cash

flows in better way.

 Yes  No  Not Sure

8. Does your firm use Net Present Value (NPV) technique?

 Yes  No  Not Sure

 9. While using NPV technique do you conduct sensitivity and simulation test in

order to develop an understanding about both reward and challenges entailing

from the uncertainties of variables to the investment.

 Yes  No  Not Sure

10. Has rewards been beneficial and shown to have

increase in value due to helpful and encouraging movement

in the concerned variables.

 Yes  No  Not Sure

11. Has challenges evolved from balancing the possibility for

such benefits and gains against the odds of losses arising

out of adverse or opposite movement in the variables

concerned.

 Yes  No  Not Sure

 12 Fluctuations of any kind or quantity, (financial, economic

and political variables ranging from exchange rates, interest

rates, commodity prices or political turmoil) have always had

destabilizing effects on investment strategies and

performance on your firm.

 Yes  No  Not Sure

13. Is your firm familiar with Simulation analysis (appraises

and evaluates the future cash flow and returns on

investments when more than one uncertain element is

involved).

 Yes  No  Not Sure

14. In the capital budgeting simulation major goals are always to increase

market value of the investment by keeping pace with innovations and technology.

 Yes  No  Not Sure

 15. Do you think that simulation analysis is more realistic

than any other analysis because it allows and introduces

uncertainty for many variables to be considered?

 Yes  No  Not Sure

16. Do you think that rationality and adequate discount rate

helps in handling the risk.

 Yes  No  Not Sure

17. As an investor do you take help of profitability index to determine which of the project

will provide highest value per rupees of investment?

 Yes  No  Not Sure

18. Do you think that investment decisions should be made only on the outcome

of profitability?

 Yes  No  Not Sure

19. By sound forecasting techniques your firm may predict the ways to negotiate
the risk involved in capital budgeting.
 Yes  No  Not Sure

20. Do you think that to avoid mistakes, it is important that a decision-maker

identify the risks and devise ways to mitigate those risks?

 Yes  No  Not Sure

THANK YOU FOR YOUR COOPERATION