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The Significant Of Investment Appraisal Techniques To Management Decision Making
[A CASE STUDY OF UNITED BANK OF AFRICA]
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1.5 SCOPE AND LIMITATION OF THE STUDY
The scope of this study will cover capital investment decision in manufacturing companies and banking industry otherwise know as “Capital budgeting any other investment decision may be mentioned in the study but special emphasis shall be land on capital investment decision i.e. longterm decision making.
All information apart firm the case study (UBA) and as the result the study may be limited or constrained reluctancy in giving the required information by the management of UBA, be cause of the urgency this research work is limited by time constraint and there is shortage of found to carryout my investment.
1.6 RESEARCH METHODOLOGY
The nature of this study permit the use of both primary and secondary data the secondary data will be predominantly used.
Simply because of primary data were to be used, information may not be secured due to the strictness of the UBA in disclosing secret and relevant information on capital investment decision in manufacturing and banking industry and they are product of various appraisal techniques.
Secondary data are kind of data that has already existed some where or which other researchers have worked on the secondary data which shall be collected from either published, text books, journal or library.
1.7 ORGANIZATION OF THE STORY
The structure of the research work is divided onti five chapters.
Chapter one (the introduction) this will deal with general introduction of the research.
Chapter two (literature review) is the study that will shield light on the works of different authors researcher in related fields and review of every journal and literature that related and relevant to the research study.
Chapter three (Research methodology) it will show method of data collections and how they are going to be analyzed and qualified using chi-square statistics, brief history of the case study, United Bank of African Plc.
Chapter four (Data analysis and presentation) it will contain presentation of result, text of hypothesis, it also cover the interpretation of result.
Chapter five (Summary, Conclusion and recommendation) which is the last chapter is going to summaries the research work and recommendation will be made leased or the finding.
1.8 DEFINITION OF TERM
 Accounting rate of return (ARR); it is a method of using accounting information as reviewed by financial statement to measure the profitability of an investment.
 Appraisal techniques; this is a criteria for measurement of investment worth.
 Capital budgeting, this is complex theoretical area which involve investment and financial decision.
 Cost of capital: The project cost of capital is the minimum acceptable rate of return on funds committed on the project
 Discounted factor: It is an appraisal criteria that takes into consideration true value of money.
 Net Present Value (NPV): This is the class is economic method of evaluating the investment proposals. It is one of the discounted value of money.
 Investment: This is the process of committing fund to a particular project in anticipation of flow of benefits.
 Profitability index (PI): It is a time adjusted method of evaluating the investment proposal. It is otherwise known as benefit cost (BIC) ratio.
1.9 GENERAL HYPOTHESIS
The general hypothesis to be tested in this study are: Ho, investment appraisal technique will not have positive impact on management decision making.
Hi: Investment appraisal techniques will have positive impact on management decision making.
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