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Question

A decision to acquire a new and modern plant to upgrade an old one is a______________.

A
Financing decision
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B
Working capital decision
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C
Investment decision
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D
Dividend decision
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Solution

The correct option is C Investment decision
Investment Decision:
Investment decisions includes investment in fixed assets (called as capital budgeting). Investment in current assets are also a part of investment decisions called as working capital decisions.
It includes Decisions relating to the disposal and acquiring and upgrading new assets.

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