Part Five Long-Term Investment Decisions

Probably nothing that financial managers do contributes more to the firm’s goal of maximizing shareholder value than making good investment decisions. The term capital budgeting describes the process for evaluating and selecting investment projects. Often, investment projects can be very large, such as building a new plant or launching a new product line. These endeavors can create enormous value for shareholders, but they can also bankrupt the company. In Part Five, you’ll learn how financial managers decide which investment ...

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