State the theory of capital and investment, Managerial Economics

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Theory of Capital and Investment: Theory of Capital and Investment evinces the below significant issues:

Selection of a viable investment project
Efficient allocation of capital
Assessment of the efficiency of capital
Minimising the possibility of under capitalisation or overcapitalisation. Capital is the building block of a business. Similar to other factors of production, it's also expensive andscarce. It must be allocated in the most efficient manner.

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