CAPITAL INVESTMENT DECISION: Capital Investment : Its Principles (Lesson : 1) 2. Project Cash Flow (Lesson : 2) 3. Capital Budgeting Techniques (Lesson : 3) 4. Risks and Uncertainties in Capital Investment (Lesson : 4) 5. Cost of Capital (Lesson : 5) 6. Value Creation through Required Market Returns (RMR) (Lesson:6)

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Capital Investment is the most important of all the major financial decisions of an enterprise namely investment decision, financing decision and dividend decision. It covers the main aspects of ma... nagement of capital expenditure such as planning for capital requirements to be invested as fixed capital; determination of long term financial policies, planning for capital & financial structures and control of capital expenditure. Investment decision is the core of financial management. This is because of the fact that of all the major aspects of financial management viz. management of capital expenditure, investment decision, working capital management, profit management, tax management, merger and combination etc.; Capital investment decision is the most vital one. The success or failure of an enterprise depends to a great extent on its correct capital investment decision. Therefore, UNIT#THREE includes the following lessons as regards capital investment decision: 1. Capital Investment : Its Principles (Lesson : 1) 2. Project Cash Flow (Lesson : 2) 3. Capital Budgeting Techniques (Lesson : 3) 4. Risks and Uncertainties in Capital Investment (Lesson : 4) 5. Cost of Capital (Lesson : 5) 6. Value Creation through Required Market Returns (RMR) (Lesson:6) [Show More]

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