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Investment decision making
Impact of Rationing and Constraints on Investment Choices
December 11, 2023
How do capital rationing and budget constraints influence decision-making in capital budgeting?
Capital rationing and budget constraints limit available funds for investments, impacting the selection of projects. They necessitate prioritization, focusing on projects with the highest potential return within the allocated budget, affecting overall investment decisions.
Tags : Capital Rationing , Budget Constraints , Investment Decision-MakingIncorporating Non-Financial Factors in Investment Assessments
December 13, 2023
How do businesses incorporate qualitative factors into capital budgeting evaluations?
Businesses use scoring models or decision trees to assign values to qualitative factors like managerial expertise or market trends, allowing their inclusion in the investment evaluation process.
Tags : Capital Budgeting , Qualitative Factors , Investment Decision-Making