question archive list and briefly describe each of 5 stages in capital budgeting
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list and briefly describe each of 5 stages in capital budgeting
Answer:
1. An identification stage to determine which types of capital investments are available to accomplish organization objectives and strategies.
2. An information-acquisition stage to gather data from all parts of the value chain in order to evaluate alternative capital investments.
3. A forecasting stage to project the future cash flows attributable to the various capital projects.
4. An evaluation stage where capital budgeting methods are used to choose the best alternative for the firm.
5. A financing, implementation and control stage to fund projects, get them under way and monitor their performance.