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Investment (See Chapters 2 and 11 of the Vernimmen)
Investment is an outlay expected to increase operating cash flows in the Future. Investments are carried out from a long-term perspective and have a longer life than that of the operating cycle. Unlike charges, investments are not destroyed in the operating cycle. Investment represents abstinence with a view of increasing Future receipts. The increase must be sufficient to ensure the forecasted Return on investment. Investment is a fundamental process in the life of a company, engaging it for a long period.
Investment (See Chapters 2 and 11 of the Vernimmen)
Investment is an outlay expected to increase operating cash flows in the Future. Investments are carried out from a long-term perspective and have a longer life than that of the operating cycle. Unlike charges, investments are not destroyed in the operating cycle. Investment represents abstinence with a view of increasing Future receipts. The increase must be sufficient to ensure the forecasted Return on investment. Investment is a fundamental process in the life of a company, engaging it for a long period.
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