Capital investment decisions, also known as capital budgeting decisions or long-term investment decisions, are a crucial aspect of financial management. These decisions involve the selection of assets in which a firm will invest funds, typically relating to fixed assets or long-term assets expected to yield a return over a period Read more
Capital rationing is a significant situation in financial management, particularly within the realm of investment decisions or capital budgeting. It arises when a firm is faced with a constraint, either externally imposed or self-imposed, that limits its ability to obtain the necessary funds to invest in all available projects that Read more
Financial management involves key decisions, including financing decisions, investment decisions, and dividend decisions. Investment decisions are concerned with the selection of assets where funds will be invested by a firm. These decisions can relate to long-term or short-term investments. Long-term investment decisions are related to investment in long-term assets or Read more
Capital budgeting, also referred to as investment decision-making, is a crucial area within financial management. It involves the firm’s decision to invest its current funds most efficiently in long-term activities with the anticipation of receiving a flow of future benefits over a series of years. This area is concerned with Read more
Capital budgeting is a fundamental area within financial management. It is also referred to by several other terms, including capital expenditure decision, capital expenditure management, long-term investment decision, and management of fixed assets. At its core, capital budgeting is the process of making investment decisions in capital expenditure. It involves Read more