Which of the following is NOT a reason why a firm's financial managers must take great care when making investment decisions? A) These investment decisions determine whether the firm will add value for its owners

The current statement is option C) These investment decisions determine the corporation's mix of debt and equity.

The investment decision is not a determent factor to decide the company's capital structure, which is prominent in taking the financing decision of a firm.

Option A: Investment decisions should add value to the company owners (shareholders). The future returns of the company ultimately depends on the selection of assets chose for investment in the investment decision. Based on the investment the company can improve the dividend distribution to its shareholders that eventually leads to an increase in the value of shareholders.

Option B: Investment decision helps a business to predict the long-term directions as the decision is to invest in suitable assets that covers long-term as well as short-term assets, by making use of the available resource of a business, which should benefit the company in future, otherwise, it leads to the wastage of resources.

Option D: The investment decision should balance the cost and benefit that arrives from the endowments. If the cost is more than the benefit, then the company would incur a loss in the future. So, adequate care must take before making an investment decision.