hus, investment decisions are mutually important toshareholder, employee, consumer and economy as a whole.
hareholder interested since capital expenditure decisionsaffect earning power and growth.
mployee affected since investment may result in animprovement in profits and productivity, from which he mayexpect increased earnings.
Consumer hopes to benefit from an increase in productivity by an improvement in quality or reduction in price.
he economy as a whole is affected by the total volume of the investment, together with its timing and quality.
We can consider the total investment in a company as aseries of projects or investment decisions.