The following literature review dealt with a review of past studies conducted on capital budgeting and its related aspects. Both foreign and Indian studies on capital budgeting were included as part of the study. The review tried to critically analyze each and every aspect of every individual study from methodology to statistical tools being applied and findings. An attempt was made to find the relevant gaps in previous studies. It was identified by the review that non-sophisticated methods of capital budgeting and risk assessment are still being used, and this needs to be studied. Additionally, risk assessment methods were revealed to be not sophisticated, which can become part of a future study. This also included a method to adequately incorporate risk information in the capital budgeting process.

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13. Graham, J., & Harvey, C. (2002). How do CFOs make capital budgeting and capital structure decisions? Journal of Applied Corporate Finance, 15 (1), 8-23. <a href=http://dx.doi.org/10.1111/j.1745-6622.2002.tb00337.x target="_blank">http://dx.doi.org/10.1111/j.1745-6622.2002.tb00337.x </a>
14. Gupta, D. (2013). Impact of project size and social cost benefit analysis on capital budgeting decisions of Indian firms. Indian Journal of Finance, 7 (10), 45-53.
15. Gupta, D., & Mohanty, R. P. (2012). Factors affecting capital budgeting decisions: A structural equation modeling study. Indian Journal of Finance, 6 (10), 18-25.
16. Haka, S. F. (2006). A review of the literature on capital budgeting and investment appraisal: Past, present, and future musings. In, C.S. Chapman, A. P. Hopwood, & M. D. Shields (eds.), Handbooks of management accounting research (Vol. 2, pp. 697-728). Amsterdam, The Netherlands : Elsevier. <a href=http://dx.doi.org/10.1016/s1751-3243(06)02010-4 target="_blank">http://dx.doi.org/10.1016/s1751-3243(06)02010-4</a>
17. Jain, P. K., & Yadav, S. S. (2005). Financial management practices in public sector enterprises: A study of capital budgeting decisions. Journal of Advances in Management Research, 2(1), 32-46. <a href=http://dx.doi.org/10.1108/97279810580000369 target="_blank">http://dx.doi.org/10.1108/97279810580000369</a>
18. Jape, S. S., & Korde, T. (2014). Study of established financial management tools and techniques and their application by business houses (with reference to Mumbai based companies period-2002-2012). Aeweshkar Research Journal, 18(2), 71-89.
19. Kengatharan, L. (2016). Capital budgeting theory and practice: A review and agenda for future research. Applied Economics and Finance, 3(2), 15-38. <a href=http://dx.doi.org/10.11114/aef.v3i2.1261 target="_blank">http://dx.doi.org/10.11114/aef.v3i2.1261</a>
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21. Khata, S. (2008). IRR-A blunder -what next? But it is still popular-why? Indian Journal of Finance, 2(6), 19-25.
22. Lam, K. C., Wang, D., & Lam, M. C. K. (2007). The capital budgeting evaluation practices (2004) of building contractors in Hong Kong. International Journal of Project Management, 25(8), 824-834. <a href=http://dx.doi.org/10.1016/j.ijproman.2007.03.010 target="_blank">http://dx.doi.org/10.1016/j.ijproman.2007.03.010</a>
23. Mukhopadhyay, A. (2010). Evolution of cost of capital: An appraisal. Indian Journal of Finance, 4(2), 38-46.
24. Nurullah, M., & Kengatharan, L. (2015). Capital budgeting practices: Evidence from Sri Lanka. Journal of Advances in Management Research, 12(1), 55-82. <a href=http://dx.doi.org/10.1108/jamr-01-2014-0004 target="_blank">http://dx.doi.org/10.1108/jamr-01-2014-0004 </a>
25. Robbins, G., & Kester, G. W. (2011). Financial policies and practices of companies listed on the Irish stock exchange: Capital structure, dividends and capital budgeting. Irish Accounting Review, 17(2), 65-93.
26. Rossi, M. (2015). The use of capital budgeting techniques: An outlook from Italy. International Journal of Management Practice, 8(1), 43-56. <a href=http://dx.doi.org/10.1504/ijmp.2015.068302 target="_blank">http://dx.doi.org/10.1504/ijmp.2015.068302 </a>
27. Roy, D., & Hota, D. C. (2014). Capital budgeting practices of corporate enterprises in India: An empirical study. Research Bulletin, 40, 21-33.
28. Ryan, P. A., & Ryan, G. P. (2002). Capital budgeting practices of the Fortune 1000: how have things changed. Journal of Business and Management, 8(4), 355-364.
29. Singh, S., Jain, P. K., & Yadav, S. S. (2012). Capital budgeting decisions: Evidence from India. Journal of Advances in Management Research, 9(1), 96-112. <a href=http://dx.doi.org/10.1108/09727981211225671 target="_blank">http://dx.doi.org/10.1108/09727981211225671</a>
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31. Verbeeten, F. H. M. (2006). Do organizations adopt sophisticated capital budgeting practices to deal with uncertainty in the investment decision? : A research note. Management Accounting Research, 17(1), 106-120. <a href=http://dx.doi.org/10.1016/j.mar.2005.07.002 target="_blank">http://dx.doi.org/10.1016/j.mar.2005.07.002</a>
32. Verma, S., Gupta, S., & Batra, R. (2009). A survey of capital budgeting practices in corporate India. Vision : The Journal of Business Perspective, 13(3), 1-17. <a href=http://dx.doi.org/10.1177/097226290901300301 target="_blank">http://dx.doi.org/10.1177/097226290901300301 </a>
33. Yadav, A. (2015). Capital budgeting procedures and practices of unsung entrepreneur in Delhi. International Journal of Science and Research, 4(1), 37-41.
34. Yadav, V. K. (2013). Capital budgeting in small-scale industries. Indian Journal of Finance, 7(10), 5-13.