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