Why are the capital investments important? Capital investments are important for three reasons:

1. They have long term implications on the company.

2. Capital investment decisions are irreversible. This is owing to the fact that the markets for used capital equipment is not an organized one. Further, the capital equipments ordered and bought may have special tailor made specifications of the customer.

3. Capital investment decisions involve substantial outlays

Sanisha Maharjan
Jan 18, 2022
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