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Capital Investment Decision – CH 12
For this discussion board discuss the purpose of capital investment decision and in a sentence or two explain the 4 methods that were discussed in the chapter and which you did HW on (Describe NPV, IRR, ARR and Payback Period In a brief paragraph or a few sentences for each method. These are the 4 most common methods to evaluate capital projects).
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Capital Investment Decision
Purpose of capital investment decision
When a business makes a capital investment decision, it’s for the long-term growth of the
organization. For the purpose of the company`s future growth, it will plan and implement its
capital investment. The main purpose of capital investment decision are made for increasing
operational capacity. There is also the purpose of capturing a large share of the market to ensure
effective and a competitive adva...
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