Process of capital budgeting
                     PROCESS 
OF  
BCUADPGIETATILN
G
Identifying and generating 
Capitalp bruodjgeecttinsg startswith investment  
proposals. There are various motivations 
for  making an investment in a business. 
A  product line might be increased in 
scope or  widened. Alternate suggestions 
include  raising output or lowering 
production costs.
Evaluating the 
project
It primarily consists of selecting all the criteria 
 necessary for determining the need for a  
proposal. To maximise marketing value it 
must  correspond to the company’s mission. It
is  critical to consider the time value of money 
here.
Selecting a 
After the projepcrto hjaesc bteen completed, the 
remaining  components must be addressed. These 
include the  acquisition of funds, which the 
company’s finance  department can investigate. 
Before concluding and  approving the project, the 
companies must consider  all options.
Implementati
on
Once the project has been implemented, 
other  critical elements such as completion 
within the  time frame specified or cost 
reduction must be  addressed. Following 
that, management is in  charge of monitoring 
the project’s impact.
Performance 
Review
This entails analyzing and comparing actual  
results to predicted outcomes. This step 
assists  management in identifying and 
eliminating flaws  in future proposals.
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