Which of the following is an important factor to be considered in long-term investment decisions? |
Control Consideration Stability of Earnings Contractual Constraints Rate of Return |
Rate of Return |
The correct answer is Option (4) → Rate of Return In long-term investment decisions (also called capital budgeting decisions), the most important factor is the rate of return expected from the investment. It helps determine whether the project will be profitable and financially viable over time. |