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 can be an important consideration in capital budgeting, it is not considered a major step in the process. The major steps typically include generating investment project proposals, estimating cash flows, evaluating and selecting projects based on various criteria, and performing post-audits to review the performance of selected projects.

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