As a financial manager three major decisions are to be made which are investment, financing, and dividend decisions (Pujari, S 2015). When decisions are made in investments financial managers carefully select fixed assets also known as capital budgeting decision or current assets in which funds will be invested by the company (Pujari, S 2015). There are factors that affect the investment and capital budgeting decisions such as cash flow of the project, return on investments, risks involved, and investment criteria. For the cash flow of the project the company invests a huge amount of funds in an investment proposal it is expected to sustain a regular amount of cash flow to meet the daily requirements (Pujari, S 2015). The amount of cash flow generated must be assessed before the company invests in a proposal. The returned investment is the most important criteria in deciding the rate of return for the investment proposal. Every investment proposal has some type of risk involved, financial managers need to calculate the risks involved and consider the proposal that has the least amount of risks (Pujari, S 2015). In investment criteria financial managers need to compare all the alternatives to help the company to decide the best proposal to invest in. Investment decisions are important they are long term decisions and are irreversible, it involves in huge amount of funds, it affects the future earning capacity of the company (Pujari, S 2015). The second important decision that financial managers make is finances. Companies get their finances from many sources such as issues of shares and by taking out loans, deciding on how much to raise from different sources is a concern of the financial decisions that financial managers make (Pujari, S 2015). The main sources of finance are divided into two different categories, owner funds and borrowed funds. Financial manager’s