Abhinav is working as a production manager in a steel manufacturing plant, 'KPG Ltd.' To compete in the market, he thought of replacing the existing…

Investment Decision/Capital budgeting decision Factors affecting capital budgeting decision are: $\displaystyle 1$) Cash flows of the project in the form of series of cash receipts and payments should be carefully analysed before considering this decision. $\displaystyle 2$) Rate of return of the project i.e., the expected returns from each proposal and the assessment of the risk involved should be taken into consideration. $\displaystyle 3$) Investment criteria involves a number of calculations regarding the cash flows, rate of return, amount of investment and interest rate which should be evaluated and applied to each proposal. B