Question

Consider where you currently work, where you have previously worked, or a well-known company where you would like to work. How might this company make capital investment decisions? What capital investment decisions do you see evidence of at this company? Explain.

A MINIMUM OF 150 WORDS, PLEASE.

Answer 1

In our Steel Company, the capital investment has been at the prime importance between all expenditures. The capital budget has been prepared and presented to the Board in the beginning and the same is executed as and when required by the operation and production departments. The company has been operating at a defined level and the capital assets have been procured according to requirement of the production level. As and when company progresses and production level goes up, the operation and production departments head takes decisions towards raising capital assets. The departments raised acquisition of equipments desired to cop up with the raised level. The finance department is called up to arrange finance for the acquisition of the assets. The procurement departments asked to look out for the options of producers of the concerned equipment assets. Finally, the capital investment is made. The change in the capital investment is observed and seen through change in production level, as in 2015 the company’s production was 25000mt which raised to 35000mt in the year 2016.