INVESTIGATING CONCEPTUAL FRAMEWORKS FOR CAPITAL BUDGETING VALUATION

A Budget for capital expenditures is a critical component of any financially sensible strategy. The internal rate of return, net present value, and payment duration may be taken into account in capital planning. Graham and Harvey recommend that due diligence be conducted solely on discount-free metrics, such as internal rate of return (IRR) and present value (PP). Techniques such as NPV and PP are frequently surveyed due to their widespread use. Complex strategies are frequently preferred by organizations with substantial financial resources. The expense of capital is a significant factor in the risk assessment of over 70% of organizations. This paper addresses critical issues, which may enable others to read it and make more informed decisions. The direction of future research will be determined by the results of this exploratory study.