Abstract
In this chapter we shall be examining how managers of businesses make long-term investment decisions vis-à-vis short-term decisions. The main difference between long and short-term decisions is that the benefits in the case of long-term decisions will accrue over a longer period, usually well over one year, and often much longer. This difference in time dimension has important implications in terms of the value of money. The value of money over time will be an important feature in the evaluation of the differing methods of investment appraisal available to managers, and will be considered later.
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References
Lumby, S. (1991) Investment Appraisal and Financing Decisions,4th edn, Chapman and Hall.
Further reading
An interesting analysis of the use of investment appraisal methods is published by The Chartered Institute of Management Accountants in their Occasional Paper Series entitled, Capital Budgeting for the 1990s,by Richard Pike and Mitchell Wolfe.
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© 1994 Aidan Berry and Robin Jarvis
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Berry, A., Jarvis, R. (1994). Investment decisions. In: Accounting in a Business Context. Business in Context Series. Springer, Boston, MA. https://doi.org/10.1007/978-1-4899-6942-2_20
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DOI: https://doi.org/10.1007/978-1-4899-6942-2_20
Publisher Name: Springer, Boston, MA
Print ISBN: 978-0-412-58740-5
Online ISBN: 978-1-4899-6942-2
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