If a company is planning to upgrade its machinery, it will be investing incapital.

Fixed

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Working

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Current

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Borrowed

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Solution

The correct option is A Fixed
Machinery is a long-term asset. Investment in machinery will be an investment in a company's fixed capital.

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Similar questions

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Q. 'S' Limited is manufacturing steel at its plant in India. It's enjoying a buoyant demand for its product as economic growth is about 7 to 8% and the demand for steel is growing. It is planning to set up a new steel plant to cash on the increased demand it is facing. It is estimated that it will require about Rs.5,000 crores to setup and about Rs. 500 crores working capital to start the new plant.
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Questions

1. Describe the role and objectives of financial management for this company.

2. Explain the importance of having a financial plan for this company. Give an imaginary plan to support your answer.

3. What are the factors which will affect the capital structure of this company?

4. Keeping in mind that it is a highly capital-intensive sector, what factors will affect the fixed and working capital. Give reasons in support of your answer.

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If a company is planning to upgrade its machinery, it will be investing incapital.

The correct option is A FixedMachinery is a long-term asset. Investment in machinery will be an investment in a company's fixed capital.

The correct option is A Fixed
Machinery is a long-term asset. Investment in machinery will be an investment in a company's fixed capital.