INTRODUCTION
Every business firm normally will like to know how it performed over a period of times, thus leading to the preparation of profit and loss statement. They also ask about their position at a particular point in time which leads them to prepare balance sheet. Finally, they will like to know where they are heading, which has led to the preparation of budgets.
Budget is term used locally by a lay man. Lay man confuse budgeting with planning. A budget is part of a plan. A plan can be expressed in monetary and non-monetary term. Any plan that is qualified in monetary term is a budget. A budget, therefore, can be succulently defined as a statement of intention qualified in monetary term.
In budgeting there are types of budget prepared by firms. Such budgets includes capital budgets, cash budgets, sales budget and so on.
The process of preparing capital budget is called capital budgeting. Capital budgets are long term budgets made for acquisition and expansion of fixed assets. Capital budgets are prepared by many films today. It was originated in the United States of America (USA). In America it was applied by firms before the second world war.
After the second world war many firms saw the need to plan for capital expenditure, hence it is prevalence today.
Nigerian breweries limited, Monarch larger beer and other beverages, are not left out in the train of firms which prepare budgets for its capital expenditure. this is, however, not easy as it is fraught with a lot of problems.
TABLE OF CONTENTS
Title Page II
Certification III
Dedication IV
Preface VI
Acknowledgement VII
Table of contents IX
CHAPTER ONE
Introduction
1.1 Problem statement 2
1.2 Hypothesis 6
1.3 Limitations of study 8
1.4 Significance of study 9
1.5 Definition of terms 12
CHAPTER TWO
Literature review
2.1 Ranking investment proposal 14
2.2 Post auditing of the investment decision 17
2.3 Analysis of capital projects 19
2.4 Capital rationing 35
CHAPTER THREE
Research methodology and designation
3.1 Sources of data 55
CHAPTER FOUR
Case study and analysis of data and presentation
4.1 Profile of Diamond breweries limited 61
4.2 Organisational structure with special –
CHAPTER FIVE
Summary of findings, recommendation and conclusion
5.1 Summary of findings 75
5.2 Recommendations 78
5.3 Conclusion 80
BIBLIOGRAPHY 81
INTERVIEW QUESTIONS 83
APPENDIX