CONTENTS

Chapter No. Name Page No.

Chapter – I Introduction 1

I.1 Objectives of the study 2

I.2 Methodology of the study 3

Chapter – II Capital budgeting decisions 4-5

II.1 Techniques of capital budgeting 6-11

II.2 Evaluation of project cash flows 12-17

Chapter – III Company Profile 18-30

Chapter – IV Analysis of projects in HAL. 31-64

Chapter – V Findings & Conclusions. 65-68

Chapter – VI Suggestions 69

Appendix Bibliography. 70
Websites.
 LIST OF TABLES

SI.NO TITLE PAGE NO

II.1 Single investment proposal format 15
III.1 HAL customers 26
IV.1 Supply of Eqot. Project 32
IV.2 Recording system project 33
IV.3 Advanced computer system project 34
IV.4 Radar Equipment project. 35
IV.5 The pay back period of project-1. 37
IV.6 The pay back period of project-2 38
IV.7 The pay back period of project-3 39
IV.8 The pay back period of project-4 40
IV.9 The ARR of project-1 43
IV.10 The ARR of project-2 44
IV.11 The ARR of project-3 45
IV.12 The ARR of project-4 46
IV.13 NPV of project-1 49
IV.14 NPV of project-2 50
IV.15 NPV of project-3 51
IV.16 NPV of project-4 52
IV.17 Profitability Index of project-1 55
IV.18 Profitability Index of project-2 56
IV.19 Profitability Index of project-3 57
IV.20 Profitability Index of project-4 58
V.1 Accept /Reject the new schemes 67
V .2 Comparative Analysis of all projects 68
 LIST OF FIGURES

SI.NO TITLE PAGE.NO

41
IV.1 Pay Back Period of different Projects
47
IV.2 The ARR of different Projects
53
IV.3 NPV of different Projects 59
IV.4 Profitability Index of different Projects 64
IV.5 IRR of different Projects

LIST OF EXHIBITS

SI.NO TITLE PAGE NO

II.1 Investment Criteria 8

III.1 Organizational Growth of HAL 21
III.2 Board of Directors 24
III.3 Corporate organization. 25