Post on 10-Apr-2015
description
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