Question

Which set consists of examples of Long-term Investment Decisions?

Options

• Cash receipts and payments over the project life

• Investment amount, interest rate, cash flows, and rate of return

• Buying new machines, new fixed assets, opening new branches

• Cash, inventory, receivables management

Answer 1

Buying new machines, new fixed assets, and opening new branches are Long-term Investment Decisions. They are examples of Capital Budgeting rather than Working Capital Decision.