One of the problems faced by companies is that of
making investment decisions. Since resources such as
men, materials and money are limited, it therefore
means that companies must have certain objectives in
mind to enable them make rational decisions. The
principal aim of this research work is to examine the
rationale behind selecting various types of investment
open to companies vis-à-vis choosing that alternative
course of action that yield the greatest future benefits.
This project is primarily concerned with the strategies or
techniques available to companies for evaluating
investment proposals in relation to their expected return
and risk in order to create and add value to the business.
It was found in the study that various types of
investment decisions are open to a company and that
investment projects are carried out based on the cost
and the funds available to the company. Also there are
various techniques for measuring the payoffs from these
projects. Finally, the project yields useful suggestions on
how companies can improve their decisions on
investment and thus their level of profitability