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Research Article

EEO. 2021; 20(5): 4563-4567

Assessment of Capital Budgeting Technique in Evaluating the Profitability of Manufacturing Firm with Reference to SME In Rajasthan

Dr. Jyoti Prasad Kalita.


The study consists the insights of data analysis of measuring and evaluating the financial performance of manufacturing companies by using techniques of capital budgeting. In this study, the researcher discussed the results of the survey which is gathered from the SMEs Company’s Chief Executive Officer (CEO), Chief Financial Officer (CFO), Investment Manager, Financial Manager, Corporate Accountant and others. Data was collected and analyzed to understand the performance of manufacturing companies by using capital budgeting techniques. The overall analysis was made to prove capital budgeting is the most effective tool in evaluating the profitability of manufacturing firm, for which various tests were applied to get the result. And to understand and test the above hypotheses, chi-square test, comparisons of proportions and other tests are obtained and presented as follows to get better understanding of the results.

Key words: Capital Budgeting Technique, Profitability, Manufacturing Firm SME, Rajasthan

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