Explain about the investment decision- financial management

The investment decision relates to selection of assets in which funds would be invested by a firm. Assets which can be acquired fall into two broad group:

(i) long-term assets that yield a return over a period of time in future

(ii) short-term or current assets, described as those assets which in normal course of business are convertible into without diminution in value, generally within a year. First of these involving the first category of assets is popularly known in financial literature as capital budgeting. Aspect of financial decision making with reference to current assets or short-term assets is commonly called as working capital management.