| Author | Sharma, Indra Prasad |
| Call Number | AIT RSPR no. SM-96-27 |
| Subject(s) | Capital budget--Nepal
|
| Note | A research report submitted in partial fulfillment of the requirement for the degree of Master
of Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Abstract | Capital budgeting practices followed by an industrial firm form the backbone for
developing its profitability and competency. This subject assumes greater significance now
than ever before, for private manufacturing sector in view of the increasing complexity and
business globalization. The approach of ad-hocism to capital investment decisions may entail
disaster. In spite of such a great significance, the holistic study of capital budgeting practices,
as far as national inquiry in Nepal and an academic study in depth is concerned, remains an
unexplored area.
The present study attempts to gain insight into the capital budgeting practices in the
private manufacturing sector in Nepal. The study is done using framework developed by the
author. The study also compares briefly the practices followed in India and USA/Japan. The
primary data collection is done through personal interview-cum-questionnaire with the
principle officer responsible for capital budgeting. Secondary data have been collected from
NEPSE, and other goverrunent agencies. The response level (11 out of 13) can be considered
to be sufficient and representative particularly in the light of currently staiied stock market,
data unavailability, and sensitive nature of information being sought for the study.
It is noted that, there is centralized capital budgeting . Mostly companies have a practice
of ad-hocism in capital investments decisions. They use Payback method for proposal
evaluation. In view of various sophisticated capital budgeting techniques used and better
capital budgeting system followed by private sector in USA/Japan and India, private
manufacturing firms in Nepal need to implement a good capital budgeting system and use
DCF techniques to evaluate investment proposals. |
| Year | 1996 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Gupta, Joyti |
| Examination Committee(s) | Pandey, Indra M.;Do, Ba Khang |
| Scholarship Donor(s) | Government of France; |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 1996 |