Investment Decision Homework Help

Investment Decision.  The investment decision relates to the selection of assets in which funds will invested by a firm. The assets which can be acquired fall into two broad groups: (i) long-term assets which yields a return over a period of time in future, (ii) short-term or current assets, defined as those assets which in the normal course of business are convertible into cash without diminution in value, usually within a year. The first of these involving the first category of assets is popularly known in financial literature as capital budgeting; The aspect of financial decision making with reference to current assets or short-term assets is popularly termed as working capital management.

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