Read the passage given below and answer question.

Khanna Ltd. is a company engaged in production and trade of "Phulkari" work of Punjab. Its products are in great demand overseas. The company plans to open one more unit for manufacturing Phulkari products. For this purpose, it requires additional investment of Rs 10 crores. It involves committing the finance on a long term basis. The Finance Manager of the company has suggested issue of debentures at an estimated cost of 8%. The EBIT of the company was Rs 6,00,000 and total capital invested was Rs. 1,00,00,000. The company can also opt for issuing equity shares as an alternative to debt financing. A judicious mix of both sources - Debt and Equity would increase the EPS. 

__________ decision is exhibited in the above case.

Investment and financing

The correct answer is Option (4) → Investment and financing

The decision exhibited in the above case is related to Investment and Financing. The company is planning to open one more unit for manufacturing Phulkari products, which involves an additional investment of Rs 10 crores. The Finance Manager is considering the mode of financing for this investment, suggesting the issuance of debentures at an estimated cost of 8% as one option. Additionally, the mention of a judicious mix of both debt and equity to increase EPS indicates a financing decision as well. Therefore, the decision involves both the investment in a new unit and the method of financing that investment.