| Author | Ahmad, Shabina |
| Call Number | AIT RSPR no. SM-94-51 |
| Subject(s) | Capital budget
|
| Note | A research study submitted in pa1tial fulfillment of the requirement for the degree of
Master of Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Abstract | The study attempts to identify va1ious capital expenditure procedures for an Asian
Multinational Firm, acting as a diversified and independent unit in Asia (Thailand). The
study is based on the inf01mation collected from the company and seconda1y info1mation
from libra1y. Since capital budgeting decisions do effect the long te1m profitability and
growth prospect of a company, therefore, these cannot be based on mere in-depth market
analysis and contingency costs accounts. For a multinational fum, whether it's a parentsubsidia1y fum or an independent diversified unit, there are various critical factors that
need proper consideration and continuous re-evaluation. "Cash Flow Analysis, NPV and
Sensitivity Analysis" do consider all these factors thoroughly and give the 1
conect1
picture of capital investments.
All of these procedures are based on the principal that the positive net present
value will add to the net wealth of the shareholders, the trne owners and risk takers of a
company.
Here the study covers the quantitative aspects of capital budgeting for the
company. The analysis has been done in three major steps; financial ratios and evaluation
of the project using original assumptions, cash flow analysis, its bases and adjustments,
sensitivity analysis and critical variables for the project. The results of this analytical
approach have confumed that capital budgeting analysis & procedures will lead to the
most correct decisions since results reveal the level of profitability, growth and variability
for the project perfotmance. It relates the profitability and net addition in shareholder's
wealth to most influential variables in a project. It provides a guidance to corporate
financial managers (the fum and its management) to use "capital budgeting procedures
(NPV & IRR) and sensitivity analysis" so as to correctly analyze the impact of most
influential factors on the success of the project. |
| Year | 1995 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Pandey, Indra M.
|
| Examination Committee(s) | Gupta, Jyoti P. ;T. Chotgieat
|
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 1995 |