Read the following passage and answer the question.

Background:

Green Innovations Ltd. is an emerging company specializing in renewable energy solutions, such as solar panels and wind turbines. The company has seen steady growth in its first few years, and management is now focusing on long-term financial strategies to fuel further expansion. 

Green Innovations plans to invest $15 million in new manufacturing facilities and R&D for product innovation in the upcoming fiscal year. The company's CFO is working on a financial plan to ensure the funds are allocated efficiently while maintaining a healthy cash flow. The company has also forecasted a 20% increase in sales due to growing demand for sustainable energy solutions.

Currently, Green Innovations is reinvesting its profits into growth and diversification projects. It is allocating fim's capital to different projects with long term implications for the business.

The company's current composition of capital consists of 60% equity and 40% debt. The management is considering adjusting the mix to increase debt in order to take advantage of low-interest rates.

Green Innovations is focused on minimizing its cost of capital to ensure that future investments yield strong returns while keeping debt levels manageable.

"Currently, Green Innovations is reinvesting its profits into growth and diversification projects. It is allocating fim's capital to different projects with long term implications for the business.".

Identify the concept of financial management discussed in the aforesaid statement.

Investment Decision

The correct answer is option 3- Investment Decision.

The statement describes how Green Innovations is reinvesting its profits into growth and diversification projects with long-term implications. This clearly refers to decisions about how the firm allocates its capital to different projects that are expected to generate future returns — which is the core of an Investment Decision. Since the focus is on reinvesting profits into long-term projects, this is an Investment Decision.