Overview
In this overview, you'll learn how financing decisions connect to your core business objectives of profit maximisation and shareholder wealth creation.
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In this lesson
- 0:00 Business objectives and profit maximisation
- 0:27 Investment appraisal versus financing decisions
- 1:00 Financing choices and cost minimisation
- 1:30 Tax and operational impacts on decisions
About this lesson
Once a project has been approved through investment appraisal, the next critical step is deciding how to fund it — and this choice matters because different financing methods carry different costs, tax implications, and operational consequences. You'll explore the framework for evaluating financing options, including lease versus buy decisions, maintenance expenses, and asset replacement cycles, all with the goal of selecting the lowest-cost approach that supports your organisation's financial objectives. This foundation prepares you to make sound financing decisions that align capital structure with business strategy.
Duration: 2m
Transcript
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