Capital investment decision , techniques of capital investment , purpose of capital equipment ,meaning of capital investment

Capital investment decision - the project selected to maximize shareholders wealth consider all cash flow, discounted cash flow at appropriate market determined opportunity cost of capital will allow managers to consider is project independently from all others .

Techniques of capital investment decision -

1. Payback method
2. accounting rate of return
3. internal rate of return
4. net present value

Purchase of capital equipment - equipment that is used to manufacture a product, provider service or used to sell store and deliver merchandise . this equipment has an extended life so that it is properly regarded as a fixed assets .

Meaning of capital investment - funds invested in a firm or enterprise for a purpose of furthering its business objectives  . capital investment me also refer to a farms acquisition of capital assets for fixed assets such as plants and machinery that is expected to be productive for many years .

watch the video ..