Investment Versus Financing Decisions

Article Abstract:

Investment analysis is crucial to determining the maximum rate of return on investments in order to make investment decisions. Financing decisions relate to raising of capital structure of the company. Investment and financing decisions need to be made separately. If made separately, new projects will be evaluated on a consistent basis. Profitability can be determined in a true fashion. Financing and investment decisions are made by different departments and therefore need to be considered separately. Benefits of special financing can be quantified and included in the investment proposal. Different cash flows are rated differently in investment and financial decisions, therefore different discount rates are used. Mixing these decisions will cause improperly allocated resources.

Decision-making, Decision making, Case studies, Evaluation, Managerial accounting

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Financing with R & D Partnerships Reduces Risk

Article Abstract:

Research and development (R & D) funding often shrinks in an economic slowdown. Often these expenditures are necessary to stay competitive. R & D partnerships can creatively finance these expenses. Financing is exchanged for product rights. Professional advice is needed to retain tax qualifications. Accurate accounting is essential.

Research, Partnership, Partnerships

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Financing private capital with IDBs

Article Abstract:

Industrial development bonds have been a popular way to raise money for new equipment, buildings, and land. Recent tax reforms have made this more difficult by adding restrictions to their usage. Before getting involved, financial managers should get to know all the latest facts.

Analysis, Finance, Capital investments, Industrial development bonds

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