Which of the following is NOT a major step in the capital budgeting process?
A) generating investment project proposals
B) estimating cash flows
C) analyzing the effect of a project on the firm's financial ratios
D) performing a project post-audit and review

Question

Quizplus · Accepted Answer

While analyzing the effect of a project on the firm's financial ratios is an important consideration in the capital budgeting process, it is not considered a major step. The major steps typically include generating investment project proposals, estimating cash flows, evaluating the project's risk and return, selecting projects to include in the budget, and performing a project post-audit and review.

Which of the Following Is NOT a Major Step in the Capital