Option 1 -> Working Capital Decision deals with managing short-term assets and liabilities like cash, inventory, and receivables, not long-term fixed assets.
Option 2 -> Financial Management is a broad umbrella term that covers all financial decisions but is not specific to investment in fixed assets.
Option 3 -> Capital Budgeting Decision involves evaluating and selecting long-term investments in fixed assets like machinery, equipment, and buildings.
Option 4 -> Financial Planning focuses on overall financial strategy and forecasting future needs, not specifically on investment decisions in assets.
Hence, Option 3: Capital Budgeting Decision -> Buying new machinery is a long-term investment in fixed assets that requires substantial capital outlay and is evaluated using capital budgeting techniques (NPV, IRR, Payback Period). This falls squarely under capital budgeting decisions which deal with investment in productive assets -> correct