ABSTRACT

 The performance of any company is measured by its profitability w productivity. Therefore it is imperative for any for any firm that want to remain relevant to always set out strategies to actualize its objectives. Capital budgeting, the process of planning expenditures on assets whose cash flow are expected to extent beyond one year is one of the important strategies for achieving the goals and objectives of a firm. The research work focused on the components of capital budgeting, the techniques used for accepting a capital project and also the evaluation of the projects. The research work performance of firm! companies. in carrying out the study, Nigeria breweries plc was used as a case study. In gathering data used in the research work, primary and secondary sources of data were consulted. Questionnaires were distributed and information retrieved from the returned questionnaires. The response from questionnaires was used in testing the hypothesis empirically with chi-square (X2) using a sample size of 82 out of population of 103. From the findings the result showed that the profitability and productivity of a firm can be enhanced if capital budgeting is introduced in an efficient way. It therefore calls on management of companies wishing to actualize the goal of profitability and growth of their organization to always seek out opportunities in capital budgeting and pursue it will all efficiency and vigor.