Investment decisions

Abstract

Previous chapters have considered the shorter term operational decisions of the firm, such as price, output and advertising decisions, with the occasional look at the longer term implications of those decisions. It is now necessary to examine explicitly the longer term strategic decisions that affect the future viability of the organisation: including financing, growth and investment decisions. In doing so, the emphasis of our attention will shift from the optimal allocation of existing resources to the determination of an optimal level of current and future resources.