Slide Investment Appraisal Finance & Accounting Essay
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Long-term investment decisions are referred to as capital budgeting decisions and are evaluated using special tools, unlike general investment decisions. Capital investment comprises spending large amounts of funds on relatively illiquid activities for a time period of more than 1 year. Capital budgeting techniques can be broadly classified into two categories based on discounting valuation (Graham and Harvey, 2001; Brealey, 2012).