Making Investment Decisions

Investment decisions determine both the mix and the, type of assets held by a firm. The mix refers to the amount of, current assets and fixed assets. Consistent with the mix, the financial manager must determine and maintain certain optimal levels of each type of current assets. He should also decide the best fixed assets to acquire and when existing fixed assets need to be modified/replaced/liquidated. The success of a fum in achieving its goals depends on these decisions.

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