long-term investments of the company’s capital into operations. These decisions are the most critical decisions that are made by management. “Capital expenditures involve large amounts of money, are critical to achieving the firm’s strategic plan, define the firm’s line of business over the long term, and determine the firm’s profitability for years to come, they are considered the most important investment decisions made by management” (Parrino & Kidwell, 2011, p. 330). Any type of long-term investment…
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