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Sudha is an enterprising business women who has been running a poultry farm for the past ten years. She has saved `Rs4,00,000` from her business. She shared wiht her family her desire to utilise money to expand her business. Her family members gave her different suggestions like buying new machinery to replace the exiciting one, acquiring altogether neq equipments with latest technology, opeing a new branch of the poultry farm in another city and so on. Since these decisions are crucial for her business, involve a huge amount of money and are irreversible expect at a huge cost, Sudha wansts to analyse all aspects to the decisions, before taking any final decision.
(i) Identify and explain the financial deciwsion to be taken by Sudha.
(ii) Also, explain the briefly the factors that will affect this decision.

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(i) Investement decision/Capital budgeting decision
Investment /Capital budgeting decision involves deciding about how the funds are invested in different assets that they are able to earn the highest possible return for their investors.
(ii) Factors that affect capital budeting decision are: (Explain).
(a) Cash flows of the project
(ii) Rate of return of the project
(c) Investment criteria.

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