financial management In mba

2. Anilkumar
1)The Investment Decision relates to the decision made by the investors or the
top level management with respect to the amount of funds to be deployed in the
investment opportunities. Simply, selecting the type of assets in which the funds
will be invested by the firm is termed as the investment decision.
2)A determination made by directors and/or management as to how,
when, where and how much capital will be spent
on investment opportunities. The decision often follows research to
determine costs and returns for each option.

3. The Exchange of current funds for future benefits.
The funds are invested in long-term assets.
The future benefits will occur to the firm over a series of year.
Estimation of the required rate of return.

4. There are many ways to classify investment. One classification is as follows:
• Expansion of existing business
• Expansion of new business
• Replacement and modernization.

6. Anilkumar pattepu

7. Project evaluation refers to the systematic
investigation of an object’s worth or merit. The
methodology is applied in projects, programs and
policies. At the project level, evaluation involves
processes such as discussing a viable evaluation
plan with stakeholders; designing and planning
the evaluation; collecting, identifying and
analyzing information and evidence; analyzing the
information; and distributing the findings to
describe or understand the project and/or to
make project-related decisions.