ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Criteria for Evaluation for Capital Projects

S A Dave V V Bhatt Out of many competing capital projects, a choice of a few projects has to be made by applying certain decision criteria. The problem becomes more complex when interest rates are regulated by government. The market mechanism cannot provide appropriate guidelines in such an economy. The selected project must yield a minimum rate of return which would very likely be above the market interest rate and this minimum has to satisfy some social criteria.

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