Capital budgeting practices in SME’S: (A study of selected enterprises of Haryana)
Pankaj Kumar Gupta, Dr. Vipul Jain
Capital budgeting is one of the most important areas of financial management. There are several techniques commonly used to evaluate capital budgeting projects namely the payback period, accounting rate of return, present value and internal rate of return and profitability index. Recent studies highlight that financial managers worldwide favour methods such as the internal rate of return (IRR) or non-discounted payback period (PP) models over the net present value (NPV), which is the model academics consider superior. In particular this research focused on to evaluate the capital budgeting practices by SME’s in taking the decision for buying most important assets. This study concludes with what types of units having which type of capital budgeting practices?