CLASSIFICATION OF RESEARCH BASED ON PURPOSE

(a) Basic Research

Basic research, also known as fundamental or pure research, aims
to enhance knowledge by exploring underlying principles and
theories without a specific practical application in mind. It seeks
to answer questions about how things work and to build a
foundation for further applied research.
(b) Applied Research
Applied research focuses on solving specific, practical problems
by applying theories and principles derived from basic research. It
is aimed at finding solutions that can be implemented in real-
world scenarios often addressing issues in fields like healthcare,
education, and technology.
(c) Evaluative Research
Evaluative research assesses the effectiveness and impact of
programs, interventions, or policies. It involves systematic
collection and analysis of data to determine outcomes and
provide insights for decision-making, often used in social sciences
and public health.
CLASSIFICATION BASED ON METHOD IMPLEMENTED
a) Historical Research
Historical research involves studying past events, contexts,
and influences to understand their implications for the
present and future. It utilizes primary and secondary
sources, such as documents, artifacts, and oral histories,
analyze trends over time.
b) Descriptive Research
Descriptive research aims to provide an accurate of
characteristics or phenomena without manipulating
variables. It often involves surveys, observations, case
studies to collect data that describes a population or
situation.
c) Experimental Research
Experimental research is characterized by the manipulation
of independent variables to observe their effects on
dependent variables. It typically involves controlled
experiments, allowing researchers to establish cause-and-
 effect relationships. Randomized controlled trials are an
example.
d) Correlational Research
Correlational research examines the relationships between
two or more variables to determine if they are associated or
correlated. It does not imply causation but can highlight
trends and patterns, often using statistical methods to
analyze data.

e) Ex-post Facto Research

Ex-post research, or causal-comparative research,
investigates relationships between variables after an event
has. It examines existing conditions or outcomes to
determine potential causal relationships without
manipulation by the researcher. This approach allows for
analysis of factors influencing observed outcomes
retrospectively.
OTHER TYPES OF RESEARCH:
1. Conceptual Research: This type of research focuses on
developing new theories or exploring existing concepts. It
often involves abstract reasoning and is more theoretical
than empirical, aiming to provide a framework for
understanding phenomena or to propose new models.
2. Analytical Research: This research method involves
examining existing data to identify patterns, relationships, or
effects. It often uses statistical techniques to analyze and
interpret data, allowing researchers to draw conclusions or
make predictions based on their findings.
3. Longitudinal Research: This approach involves collecting
data from the same subjects repeatedly over a period of
time. It is used to study changes and developments in a
particular population or phenomenon, making it effective for
examining trends or causal relationships.
4. Cross-Sectional Research: Unlike longitudinal research,
cross-sectional research collects data at a single point in
time from different subjects or groups. It provides a snapshot
view, allowing researchers to analyze differences and
similarities among groups but is limited in understanding
changes over time.
 5. Clinical or Diagnostic Research: This type of research
focuses on investigating medical or health-related issues,
often involving clinical trials, diagnostic methods, or
treatment evaluations. It aims to assess the effectiveness,
safety, and applicability of medical interventions or to
understand disease processes.
6. Baseline/Benchmark Survey/Research: Baseline research
is conducted at the beginning of a project or program to
establish a starting point for measuring progress or
outcomes. Benchmarking involves comparing practices or
metrics against established standards or best practices to
identify areas for improvement.
7. Impact Assessment Research: This research evaluates
the effects of a specific intervention or program on a target
population. It aims to determine the extent and nature of the
changes caused by the intervention, often using both
qualitative and quantitative methods to measure outcomes.
8. Feasibility Studies Research: Feasibility studies assess
the practicality and viability of a proposed project or
intervention. They evaluate various factors, such as
economic, technical, and operational aspects, to determine
whether the project should be pursued or modified before
implementation.
FIVE DIFFERENCES BETWEEN RESEARCH METHOD AND
RESEARCH METHODOLOGY:
Definition:
Research Method: Refers to the specific techniques or procedures
used to collect and analyze data (e.g., surveys, experiments,
interviews).
Research Methodology: Encompasses the overarching framework
and rationale behind the choice of methods, including theoretical
principles and philosophical underpinnings.
Focus:
Research Method: Focuses on the practical steps taken to gather
data and conduct analysis.
Research Methodology: Focuses on the theoretical justification for
using particular methods and how they align with the research
objectives.
Components:
Research Method: Involves tools and techniques such as
questionnaires, sampling methods, and data analysis procedures.
Research Methodology: Involves the reasoning behind selecting
certain methods, including qualitative vs. quantitative
approaches, and the overall research design.
Purpose:
Research Method: Aimed at executing the data collection and
analysis process effectively.
Research Methodology: Aimed at ensuring that the research is
robust, valid, and reliable by justifying the chosen methods.
Application:
Research Method: Can be viewed as the "how" of research (e.g.,
how to conduct an experiment).
Research Methodology: Can be viewed as the "why" of research
(e.g., why a particular experimental design is suitable for the
research question).
In summary, while research methods are the specific techniques
used in a study, research methodology is the broader framework
that guides the selection and application of those methods.

CAPITAL BUDGETING SUMMARY

Capital Budgeting is the process by which a company evaluates

and decides on long-term investment projects. It involves
assessing the potential profitability and financial feasibility of
projects, such as purchasing new equipment, launching new
product lines, or investing in facilities.
Importance of Capital Budgeting
Resource Allocation: Helps in allocating limited resources to the
most profitable projects.
Risk Assessment: Identifies and quantifies potential risks and
returns associated with investments.
Strategic Planning: Aligns projects with the organization's long-
term strategic goals.
Financial Performance: Contributes to improved financial
performance and shareholder value.
Cash Flow Management: Aids in understanding cash flows
associated with potential investments.
Common Capital Budgeting Methods
Net Present Value (NPV)
Internal Rate of Return (IRR)
Payback Period
Profitability Index (PI)
Examples of Calculations for Each Method
1. Net Present Value (NPV)
Formula:
\ [ NPV = \sum \frac{C_t} {(1 + r) ^t} - C_ \]
Where:
(C_t) = Cash inflow during the period (t)
(r) = Discount rate
(t) = Number of time periods
(C) = Initial investment

Example:
Initial Investment: $100,000
Cash inflows for the next 5 years: $30,000, $30,000, $30,000,
$30,000, $30,000
Discount rate: 10%
Calculation;
\ [ NPV = \frac {30,000} {(1 + .10) ^1} + \frac {30,000} {(1
+ .10) ^2} + \frac {30,000} {(1 + .10) ^3} + \frac {30,000} {(1
+ .10) ^4} + \frac {30,000} {(1 + .10) ^5} - 100,000 \]
Calculating each term:
Year 1: (\frac {30,000} {1.1} = 27,273)
Year 2: (\frac {30,000} {(1.1) ^2} = 24,793)
Year 3: (\frac {30,000} {(1.1) ^3} = 22,539)
Year 4: (\frac {30,000} {(1.1) ^4} = 20,490)
Year 5: (\frac {30,000} {(1.1) ^5} = 18,628)
Adding them together:
\ [ NPV = 27,273 + 24,793 + 22,539 + 20,490 + 18,628 - 100,000
\]
\ [ NPV = 113,723 - 100,000 = 13,723 \]
The NPV is $13,723, indicating that the project is expected to
generate value.

2. Internal Rate of Return (IRR)

Definition: The IRR is the discount rate that makes the NPV of all
cash flows from a project equal to zero.
Example:
Using the same cash flows from the previous example, we can
solve for IRR using the NPV formula set to zero.
\ [ = \frac {30,000} {(1 + IRR) ^1} + \frac {30,000} {(1 + IRR)
^2} + \frac {30,000} {(1 + IRR) ^3} + \frac {30,000} {(1 + IRR)
^4} + \frac {30,000} {(1 + IRR) ^5} - 100,000 \]
Calculating IRR typically requires iterative methods or financial
calculators, but suppose we find that IRR is approximately 14.5%.
This means the project's expected return is 14.5%.
3. Payback Period
Definition: The payback period is the time it takes for the
cumulative cash flows from an investment to equal the initial
investment.
Example:
Initial Investment: $100,000
Annual Cash Inflows: $30,000
Calculation:
Year 1: $30,000
Year 2: $60,000
Year 3: $90,000
Year 4: $120,000
The payback period occurs between Year 3 and Year 4:
\ [ \text {Payback Period} = 3 + \frac {100,000 - 90,000}
{30,000} = 3 + \frac {10,000} {30,000} \approx. 3.33 \
text{ years} \]
4. Profitability Index (PI)
**Formula**:
\ [ PI = \frac {NPV + C_} {C_} \]
Where:
(C) = Initial investment
**Example**:
Using the NPV calculated earlier:
\ [ PI = \frac {13,723 + 100,000} {100,000} = \frac {113,723}
{100,000} = 1.1372 \]
A PI greater than 1 indicates a good investment.
Conclusion
Capital budgeting is essential for making informed investment
decisions and ensuring the long-term success of a company. The
methods discussed provide a framework for evaluating potential
projects based on their expected financial performance.