A PROJECT REPORT ON

A STUDY ON CAPITAL BUDGETING WITH REFERENCE TO IVY LEAGUE

HOUSE , PUNE

SUBMITTED TO

INDIRA INSTITUTE OF MANAGEMENT

IN PARTIAL FULFILMENT FOR AWARD OF THE DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION

BY

YOG TIWARI

BFS-B

UNDER THE GUIDANCE OF

DR. SONALI SHROTRI

2023-24

1
 DECLARATION

I, the undersigned, hereby declare that the Project Report entitled “A Study On Capital

Budgeting With Reference To Ivy League House, Pune” Written and submitted by me to the

Indira Institute of Management, Pune in partial fulfilment of the requirement s for the award

of degree of Bachelors of Business Administration under the guidance of Dr. Sonali Shrotri is

my original work and the conclusions drawn therein are based on the material collected by

myself.

Place: Pune Yog Tiwari

Date: Student Name

2
3
4
 ACKNOWLEDGEMENT

I would like to express my sincere gratitude to my internship supervisor, Dr. Sonali Shrotri

, for their guidance and mentorship throughout my internship. I am grateful to the entire team

at IVY LEGUE HOUSE for their support and knowledge sharing. I also thank my colleagues

and fellow interns for their collaboration. I am indebted to my academic institution, Indira

Institute of Management, for providing me with this opportunity. Lastly, I am thankful for the

unwavering support of my friends and family. This internship has been transformative, and I

am confident that the skills and knowledge gained will benefit me in the future.

Thank you all.

Yog Tiwari

5
LIST OF TABLES

LIST OF FIGURES

6
CHAPTER-I

INTRODUCTION

7
 INTRODUCTION

Capital Budgeting represents a fundamental pillar of financial management, serving as the

linchpin for organizational success by enabling judicious allocation of resources towards

projects or investments that promise future returns. The essence of this discipline lies in the

rigorous evaluation, analysis, and strategic selection of investment avenues that harmonize

with an entity's overarching objectives while optimizing shareholder value.

Over the course of this internship, participants will engage in a comprehensive exploration of

Capital Budgeting methodologies. This will encompass practical exposure to financial

models, valuation techniques, and risk assessment frameworks used to scrutinize and

ascertain the viability of diverse investment opportunities. Furthermore, participants will

delve into the multifaceted impact of economic factors such as inflation, taxation, and

financing intricacies on the decision-making apparatus within Capital Budgeting.

The primary objective of this internship initiative is to furnish participants with a robust

comprehension of Capital Budgeting frameworks and their pragmatic implementation within

real-world scenarios. This will be achieved through interactive collaborations with industry

experts, immersive case study analyses, and active involvement in dissecting and evaluating

investment propositions. Consequently, participants will not only fortify their analytical

proficiencies but also cultivate the capability to offer astute recommendations for optimal

capital deployment strategies.

8
 NEED OF THE STUDY

1. Strategic Resource Allocation: Capital Budgeting enables businesses to allocate

resources strategically. By evaluating investment options rigorously, organizations can

prioritize projects that align with long-term goals, ensuring optimal utilization of

financial resources.

2. Risk Mitigation: A comprehensive grasp of Capital Budgeting aids in identifying and

mitigating risks associated with investments. Through in-depth analysis, organizations

can make informed decisions, reducing the probability of financial losses and

maximizing returns.

3. Enhanced Decision-making: Proficiency in Capital Budgeting empowers decision-

makers to assess the financial viability of potential projects accurately. This

knowledge equips them to choose ventures that promise the most significant value

addition to the organization.

4. Shareholder Value Maximization: Efficient Capital Budgeting practices directly

impact shareholder value. Making astute investment decisions results in increased

profitability and enhanced shareholder confidence.

5. Adaptation to Changing Economies: In an ever-evolving economic landscape,

understanding Capital Budgeting aids in adapting to market fluctuations and

uncertainties. Organizations can navigate economic challenges more effectively by

employing robust evaluation methods.

9
 OBJECTIVE OF THE STUDY

1. Examine Methodologies: Explore various Capital Budgeting methodologies,

including Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period,

and Profitability Index, to understand their applicability and effectiveness in assessing

investment projects.

2. Assess Risk Management Techniques: Evaluate risk assessment frameworks

integrated within Capital Budgeting practices. This involves analyzing the role of risk

mitigation strategies in minimizing uncertainties associated with investment

decisions.

3. Analyze Decision-Making Processes: Investigate the impact of economic factors such

as inflation, taxation, and financing dynamics on the decision-making process. This

includes understanding how these elements influence project valuation and selection.

4. Illustrate Real-world Applications: Provide practical insights through case studies and

industry examples, highlighting the implementation of Capital Budgeting strategies

and their outcomes in diverse organizational contexts.

5. Offer Recommendations: Summarize findings and derive actionable recommendations

for organizations to enhance their Capital Budgeting processes. This includes

proposing strategies for optimizing resource allocation, mitigating risks, and

maximizing returns on investments.

10
 SCOPE OF THE STUDY

1. Evaluation Methodologies: An in-depth analysis of prominent Capital Budgeting

techniques such as Net Present Value (NPV), Internal Rate of Return (IRR), Payback

Period, Profitability Index, and others. This examination will highlight the strengths,

limitations, and applicability of each methodology in assessing investment projects.

2. Risk Analysis and Mitigation: Exploration of risk assessment frameworks integrated

into Capital Budgeting processes. This involves identifying different types of risks,

their quantification methods, and strategies to mitigate these risks in investment

decision-making.

3. Economic Factors and Decision Influences: Examination of the impact of economic

variables—such as inflation, taxation policies, and financing structures—on Capital

Budgeting decisions. This will involve understanding how these factors influence the

valuation and selection of investment projects.

4. Case Studies and Industry Examples: Inclusion of relevant case studies and industry-

specific examples to illustrate practical applications of Capital Budgeting

methodologies. This will provide real-world insights into successful and challenging

investment decisions across diverse sectors.

5. Recommendations and Best Practices: Derivation of practical recommendations and

best practices based on the findings. This will offer actionable insights to

organizations aiming to enhance their Capital Budgeting processes, optimize resource

allocation, and improve decision-making frameworks.

11
 CHAPTER II
COMPANY PROFILE

12
 INTRODUCTION

Nestled within the vibrant landscape of Pune, Ivy League House stands as a testament to

sophistication and refined living. Positioned strategically in one of Pune's most coveted areas,

this residential development represents the epitome of luxury, offering a harmonious blend of

contemporary design and lavish accommodations tailored for individuals with discerning

tastes.

The allure of Ivy League House transcends its location, promising a lifestyle characterized by

exclusivity and elegance. Envisioned as a haven for the cosmopolitan elite, the project is

poised to showcase a spectrum of upscale amenities and facilities. From meticulously

landscaped gardens providing serene retreats to state-of-the-art fitness centers and

invigorating swimming pools, each facet is meticulously curated to ensure a comprehensive

and enriching living experience. Beyond the luxurious accommodations, Ivy League House

endeavors to cultivate a sense of community through purposefully designed spaces for social

interaction and leisure activities.

Anticipated to embody a fusion of contemporary architectural brilliance and impeccable

craftsmanship, Ivy League House manifests an unwavering dedication to excellence and

sophistication. Offering a diverse array of residential options, encompassing meticulously

crafted apartments and indulgent villas, the project aims to cater to varied lifestyle

preferences, providing generously proportioned layouts and premium finishes that exude both

comfort and sophistication. Developed by a renowned team celebrated for their unwavering

commitment to quality, this project aspires to redefine the paradigm of luxury living in Pune .

13