INVESTMENT DECISION AND PROFITABILITY IN BREWERY INDUSTRY (A CASE STUDY OF NIGERIA BREWERY PLC)

^*Adegbola Olubukola Otekunrin, Tony Ikechukwu Nwanji, Samuel Abiodun Ajayi, Frank Dayo, Awonusi, Adebanjo Joseph Falaye, Damilola Felix Eluyela

Department of Accounting and Finance,

Landmark University, Omu-Aran, Kwara State, Nigeria

Email: otekunrin.adegbola@lmu.edu.ng, nwanji.tony@lmu.edu.ng, ajayi.abiodun@lmu.edu.ng,awonusi.frank@lmu.edu.ng,falaye.adebanjo@lmu.edu.ng, eluyela.damilola@lmu.edu.ng

ABSTRACT

One of the problems faced by companies is that of making investment decisions. Since resources such as men, materials and money are limited, it therefore means that companies must have certain objectives in mind to enable them make rational decisions. The principal aim of this research work is to examine the rationale behind selecting  various types of investment open to companies vis-à-vis choosing that alternative course of action that yield the greatest future benefits. This project is primarily concerned with the strategies or techniques available to companies for evaluating investment proposals in relation to their expected return and risk in order to create and add value to the business. It was found in the study that various types of investment decisions are open to a company and that investment projects are carried out based on the cost and the funds available to the company. Also there are various techniques for measuring the payoffs from these projects. Finally, the project yields useful suggestions on how companies can improve their decisions on investment and thus their level of profitability.