Capital Budgeting And Investment Decision Making In Lenovo

Abstract

This Study Examines The Capital Budgeting And Investment Decision-making Practices At Lenovo’s Puducherry Manufacturing Plant. The Analysis Focuses On Evaluating Three Proposed Investment Projects Using Financial Tools Such As Net Present Value (NPV), Internal Rate Of Return (IRR), Payback Period, Accounting Rate Of Return (ARR), And Profitability Index (PI). The Findings Reveal That All Three Projects Are Financially Viable, With Project A Demonstrating The Highest Profitability And Strategic Suitability Based On Its Superior NPV, IRR, ARR, PI, And Shortest Payback Period. The Study Concludes That Effective Capital Budgeting Is Essential For Lenovo To Optimize Resources, Support Technological Advancements, And Ensure Sustainable Long-term Growth.

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