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What is the Capital Budgeting Process?

Managerial Economics, Notes

What is the Capital Budgeting Process?

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The process of selecting capital investment projects consists of the following important steps:

  1. Generate alternative capital investment project proposals
  2. Estimate cashflows for the project proposals.
  3. Evaluate and choose, from the alternatives available, those investment projects to implement
  4. Review the investment projects after they have been implemented.

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