Capital Management : Capital Investment Decisions Essay

785 Words Dec 29th, 2016 4 Pages
Capital investment decisions are essentially made by top level management such as the CEO or president of the company as this is where strategic decisions usually are conducted (Reference for Business, 2016). Therefore, capital investment decisions generally have to be made by the top executive level management individuals that are used to making decisions on investments that have a long term impact on the company’s performance and productivity. Additionally, capital investment decisions are made by top level executives because essentially, capital investment decisions have a significant long term effect on profitability and that is why the top level executives have more interaction with these types of decisions. Furthermore, capital investment decisions has much money tied into and spent on long term assets and constitutes a significant part of expenditure and has an even greater impact on the future of purchasing (Edmonds,Tsay, & Olds, 2011).

Even more so, capital investment decisions objective includes designating the capital investment funds of the firm in the most effective manner to make sure that the returns are the best possible returns. Likewise, it is highly necessary with capital investment decisions to gauge project requirements as they are some of the most crucial capital investment decisions aspects and thus need to be handled by those top level management executives who are fully tied into all the various aspects of decision making when it comes to…

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