Objectives of Capital Investment To acquire additional capital assets for expansion, enabling the business to, for example, increase unit production, create new products, or add value. To take advantage of new technology or advancements in equipment or machinery to increase efficiency and reduce costs1? Click to see full answer. Besides, what are the capital investment decisions?Capital investment decisions involve the judgments made by a management team in regard to how funds will be spent to procure capital assets. Whether a projected increase in fixed assets will increase the breakeven point of the business, requiring the firm to generate more sales before it can earn a profit.Beside above, what is the objective of the capital budgeting function? Basically, the purpose of budgeting is to provide a forecast of revenues and expenditures and construct a model of how business might perform financially. Capital Budgeting is most involved in ranking projects and raising funds when long-term investment is taken into account. Herein, why are capital investment decisions important? Capital budgeting is important because it creates accountability and measurability. The capital budgeting process is a measurable way for businesses to determine the long-term economic and financial profitability of any investment project. A capital budgeting decision is both a financial commitment and an investment.What is capital decision?Capital investment decisions also can be called ‘capital budgeting’ in financial terms. Capital investment decisions aim includes allotting the capital investment funds of the firm in the most effective manner to make sure that the returns are the best possible returns.