QUESTIONNAIRE

.
1. When deciding on an investment opportunity, risk consideration is always vital.
A.YES
B.NO
C. NOT SURE
2Evaluating investment decisions based on capital budgeting is not easy as theprocess itself is based on a hierarchy.
A.YES

B.NO

C. NOT SURE

3.Exploring and evaluating the alternatives course of actions available is easier for you.
A.YES
B.NO
C. NOT SURE
4. Is implementation and control to achieve the target is always the way the think
tanks has thought of in first place.
A.YES
B.NO
C. NOT SURE
5.F o r y o u r f i r m a n a v e r a g e r a t e o f r e t u r n a n d s i m p l e p a y b a c k m
e t h o d s effectively deal with the opportunity cost concept associated with invest
mentdecision.
A.YES

B.NO

C. NOT SURE

6.For time bounded projects and from execution point of view NPV techniquefor estimating capital
budgeting is more significant in nature.
A.YES
B.NO
C. NOT SURE
7NPV concept focuses on opportunity cost and helping to take risk in accountand thereby covers
uncertainty f cash flows in better way.
A.YES
B.NO
C. NOT SURE
8.Does your firm use Net Present Value (NPV) technique?
A.YES
B.NO
C. NOT SURE
9While using NPV technique do you conduct sensitivity and simulation test inorder to develop
an understanding about both reward and challenges entailingfrom the uncertainties of variables to the
investment
A.YES
B.NO
C. NOT SURE
10Has rewards been beneficial and shown to have increase in value due to helpful
and encouraging movement in the concerned variables.
A.YES
B.NO
C. NOT SURE
11 Has challenges evolved from balancing the possibility for such benefits andgains against the
odds of losses arising out of adverse or opposite movement inthe variables concerned.
A.YES
B.NO
C. NOT SURE

12.F l u c t u a t i o n s o f a n y k i n d o r q u a n t i t y, ( f i n a n c i a l , e c o n o m i c a n d p o l i t i
c a l variables ranging from
exchange rates, interest rates, commodity prices or political turmoil) have always
had destabilizing effects on investment strategiesand performance on your firm.
A.YES
B.NO
C. NOT SURE
13.Is your firm familiar with Simulation analysis (appraises and evaluates thefuture cash flow
and returns on investments when more than one uncertainelement is involved).
A.YES
B.NO
C. NOT SURE
14.In the capital budgeting simulation major goals are always to increasemarket value
of the investment by keeping pace with innovations and technology.
A.YES
B.NO
C. NOT SURE
15D o y o u t h i n k t h a t s i m u l a t i o n a n a l y s i s i s m o r e r e a l i s t i c t h a n a n y o t h e r
analysis because it allows and introduces uncertainty for many variables to beconsidered?
A.YES
B.NO
C. NOT SURE
16Do you think that rationality and adequate discount rate helps in handling therisk.
A.YES
B.NO
C. 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?
A.YES
B.NO
C. NOT SURE
18.Do you think that investment decisions should be made only on the outcomeof profitability?
A.YES

B.NO

C. NOT SURE

19.By sound forecasting techniques your firm may predict the ways to negotiatethe risk involved in capital budgeting.
A.YES
B.NO
C. 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?
A.YES
B.NO
C. NOT SURE