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