The capital budgeting techniques practices on TNB: a case study of TNB Banda Kaba Melaka / Mohd Razif Karim

This case study is capital budgeting techniques practices toward TNB Banda Kaba. The techniques in the study have seven techniques. There are payback period, discounted payback period, net present value, average/accounting rate of return, internal rate of return, profitability index, and modified rate of return. But at TNB Banda Kaba only use five techniques. There are payback period, discounted payback period, average/accounting rate of return, internal rate of return, and net present value. Two techniques are not concerned in the TNB Banda Kaba in their capital budgeting practices.

Alternative capital budgeting techniques are usually presented as a set of somewhat unrelated methods for the acceptance or rejection of a project. Under this study capital budgeting techniques, the types of project must be take consideration because it also give effected to decision making in project. The types are independent project and mutually exclusive project. For this case of study, TNB Banda Kaba use the independent project where they will accept all project because TNB is a company that generates, transmits, and distributes electricity to consumer. In this case of study, the source of information collects from the secondary data and primary data. The secondary data such as journal, articles, books, published text and primary data is interview and search website.