A STUDY ON THE IMPACT OF CAPITAL BUDGETING DECISIONS ON INVESTMENT PROJECTS AT KIRLOSKAR BROTHERS LIMITED, NAGPUR

Abstract

Capital budgeting decisions play a crucial role in the evaluation and implementation of long-term investment projects within an organization. In the context of Kirloskar Brothers Limited, Nagpur, these decisions significantly impact the company's growth trajectory, resource allocation, and overall financial performance. The study delves into the process of capital budgeting, focusing on how these decisions affect the efficiency, profitability, and sustainability of investment projects. Various methods of capital budgeting, such as Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period, are assessed to understand their effectiveness in optimizing investment returns. The research aims to evaluate the relationship between these capital budgeting techniques and the success of investment projects undertaken by the company. It also examines the factors influencing decision-making processes and how Kirloskar Brothers Limited aligns its budgeting strategies with corporate goals. The findings of the study offer insights into improving investment project selection and management, thereby enhancing the company’s competitive edge in the market. The research is based on primary and secondary data collected from the organization and its financial reports, offering a comprehensive overview of the impact of capital budgeting on investment projects.