A STUDY ON INVESTMENT APPRAISAL TECHNIQUES AND CAPITAL BUDGETING PRACTICES IN WIPRO LTD

Capital budgeting plays a crucial role in evaluating investment opportunities and ensuring effective utilization of organizational resources. The present study examined the investment appraisal techniques and capital budgeting practices followed by Wipro Limited. The analysis was carried out using various appraisal techniques, including Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period, Accounting Rate of Return (ARR), and Profitability Index (PI). The findings of the study indicate that Wipro Limited follows a systematic and well-structured capital budgeting process for evaluating investment proposals. The cash flow analysis revealed consistent positive cash flows, reflecting the company's strong financial position. Furthermore, the positive NPV, high IRR, short Payback Period, favourable ARR, and Profitability Index greater than one collectively demonstrate that the selected investment proposal is financially viable and profitable. The study concludes that the effective application of capital budgeting techniques supports sound investment decision-making, enhances resource allocation, and contributes to long-term organizational growth. Therefore, Wipro Limited's capital budgeting practices play a significant role in maximizing shareholder value and achieving sustainable business performance.

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