AN ANALYTICAL STUDY ON CAPITAL BUDGETING TECHNIQUES IN MAHINDRA AND MAHINDRA LIMITED

Capital budgeting is an essential financial management tool that assists firms in making decisions related to investment. In capital budgeting, investment projects are analysed to evaluate their profitability, risks, and financial feasibility. There are different capital budgeting methods, including Payback Period, Net Present Value (NPV), Internal Rate of Return (IRR), and Profitability Index, among others, which companies use to choose the most profitable investment opportunities. This paper seeks to investigate the concept of capital budgeting techniques, their importance, and their implementation in financial management decision-making. The study will explore the ways in which these techniques assist companies in maximising profits, mitigating risks, and growing in the long term. Both primary and secondary sources of information may be employed for the study. Secondary information may be obtained from scholarly journals, books, Internet resources, and financial reports. On the other hand, primary information may be derived from questionnaire surveys and interviews. A descriptive research design will be utilised in conducting the study, while qualitative research analysis tools will be applied in interpreting the results. The findings of the study are likely to prove that proper capital budgeting techniques contribute significantly to enhancing investment decisions.