capital investment decisions

• Nature of capital investment decision?

  large, risky investments

  Need for in depth consideration and due diligence

  Nature = complex, time consuming, high leadership
• importance??

  • Equity investors depend on decision makers -> invest appropriately
  • Large financial risk involved -> well considered decision is important to minimise failure risk
  • Opportunity Cost significant: cant invest same capital in 2 places
  • Require long term vision: poor decisions cant be undone
• why is opportunity cost important?

  cant invest same capital in 2 places
• why do you need long term vision?

  poor decisions cant be undone
• since theres a large financial risk invovled its important that?

  well considered decision to minimise failure risk
• why is making the right capital investment decision important for investors?

  equity investor depend on decision makers -> invest appropriately