Optimized Investment Through Capital Budgeting

Abstract

Optimized decision is required for planning, controlling and strategic allocation of resources. It aims to maximize the value and to enhance profitability, sustain competitiveness and to reach objective in pharmaceutical company through capital budgeting techniques. In this study Capital budgeting facilitates the allocation of resources towards projects or investments that generate the highest returns and to identify the rate of risk and return. The objective of the study is to conduct feasibility study and market analysis. It analyses cost estimates, revenue projections, and risk assessments for each investment opportunity, it also financial feasibility of the proposal and long-term viability of company. To assess the feasibility of new financial projects through present value techniques of Net Present Value and Profitability Index methods and statistical tool of standard deviation. The study based on the performance of Cash flows through discounted cash flow technique and suggests the measure for implement to the company.