Capital Budgeting-Management Advisory Services_CPARFull description
mas capital budgeting
be studios..
A summary document on Chapter 13: Capital Budgeting in Management Advisory Services by Rogelio S. Roque
mas by bobadilla
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
