Questionnaire on Capital Budgeting Name:

Techniques Company:
Designation:
Contact:
1. Your firm’s main business concentration is :
Email:
a. Banking
Signature:
b. Financing
c. Pharmaceuticals
d. Cement
e. Technological
f. Others ( please specify) :

2. Size of the company (BDT taka)

a. Less than 500 crore
b. 500-1000 crore
c. 1000-1500 crore
d. More than 1500 crore
3. Age of the company in the respective industry
a. Less than 10years
b. 10-20years
c. 20-30 years
d. More than 30 years
4. Amount needed in capital expenditure (BDT taka)
a. Less than 300 crore
b. 300-600 crore
c. 600-900 crore
d. More than 900 crore
5. Number of Employees working in your company:
a. Less than 3000
b. 3000-6000
c. 6000-9000
d. 9000-12000
e. More than 12000

6. What sophisticated models do your companies use?

a. CAPM
b. APM
c. Others: (please specify)
 7. Please indicate with (√) how frequently you company employs the following
evaluation techniques in deciding investment project to choose? ( Please tick one
square per line)
Frequency of use
Method Name Always Often Sometimes Rarely Never
Net Present Value (NPV)

Internal Rate of Return (IRR)

Modified Internal Rate of Return (MIRR)
Payback Period (PBP)
Discounted Payback Period (DPBP)
PI (Profitability Index)
Accounting Rate of Return (ARR)
Others ( please specify)

8. When deciding on an investment opportunity, risk consideration is always vital.

a. Yes
b. No
c. Not sure

9. Which of the following method is favored by your firm in deciding investment project
to choose?
a. Net Present Value (NPV)
b. Internal Rate of Return (IRR)

10. In computing IRR or NPV your firm use

a. Cash flows
b. Accounting income
11. In computing IRR or NPV, do your firm deduct interest and others financing cost from
revenue to find out cash flows?
a. Yes
b. No
12. Which of the following approaches is used in your company to determine the minimum
acceptable rate of return to evaluate potential capital investment project?
a. Weighted Average Cost of Capital (WACC)
b. Cost of debt
c. Cost of equity capital
d. An arbitrary rate
13. If WACC is used, the weights are defined by:
a. Book values derived from the balance sheet
b. Current market values

14. Is there at least one member of your employees assigned full time to capital investment
analysis?
a. Yes
b. No

15. Does your firm have a capital investment manual guideline?

a. Yes
b. No

16. Which techniques does your firm use to measure a project’s risk?
Frequency of Use
Method Name
Always Often Sometimes Rarely Never
Scenario analysis
Sensitivity analysis
Simulation analysis
Decision tree analysis

Other (please Specify)

17. For calculating NPV or IRR your firm use the standard model ( e.g. a standard
Microsoft excel model)
a. Yes
b. No

18. Your company conduct post audit of major capital expenditure?

a. Yes
b. No