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    C. George (Controls) Ltd manufactures a thermostat that can be used in a range of kitchen appliances

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    Answer to Part d

    The investment decisions of a firm are generally known as the capital budgeting, or capital expenditure decisions. The firm's investment decisions would generally include expansion, acquisition, modernization and replacement of the long-term assets. Sale of a division or business (divestment) is also as an investment decision.

    Criteria of selection of Capital Budgeting project:

    It should maximize the shareholders' wealth.
    It should consider all cash flows to determine the true profitability of the project.
    It should provide for an objective and unambiguous way of separating good projects from bad projects.
    (It should help ranking of projects according to their true profitability.
    It should recognize the fact that bigger cash flows are ...

    Solution Summary

    C. George (Controls) Ltd manufactures a thermostat that can be used in a range of kitchen appliances

    $2.49

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