Question

The first step in the capital budgeting process is determine cashflow. idea development. collection of data. assign probabilities.

Answer 1

The first step is the idea development. The proper order for the capital budgeting process is search for and discovery of investment opportunities, then there is a collection of data, then there is an evaluation and decision making, and then if it is necessary there is a reevaluation and adjustment. This is used to determine whether an organization's long term investments are worth the funding of cash through the firm's capitalization structure