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the Investment Decision,Investment and Financing Decisions,The nature of capital investment decisions ◆ Making an outlay immediately vs. Yielding benefits in the distant future. ◆ A single large amount of outlay vs. A stream of smaller amount of cash inflows. ◆ It is difficult to withdraw from an investment. ◆ Time is vital to investment decision–making,Capital investment affects the amount of future cash flows generated, the timing of those cash flows, and the variability or risk of those future cash flows and thus, the value or worth of the capital budgeting decisions.,Investment and Financing Decisions,Investment and Financing Decisions,Financing Decision Raising money that the firm needs for its investments and operations. Determining the amount, maturity and type of funds raised in financial markets. Capital Structure The mix of long term debt and equity financing.,112,Investment and Financing Decisions,The Investment Decision Real Assets The Financing Decision Financial Assets,113,Investment and Financing Decisions,Are the following capital budgeting or