Estimating the expected cash inflows and outflows from proposed projects is performed in what step of the capital budgeting process?

Question

Quizplus · Accepted Answer

Estimating the expected cash inflows and outflows is a crucial part of evaluating a proposed project, which falls under the project evaluation step of the capital budgeting process. In this step, a company must estimate the potential returns and costs associated with a project to determine if it is financially feasible and aligns with its long-term strategy. Project identification involves identifying potential opportunities, while project monitoring and review occur after projects have been selected and implemented.

Estimating the Expected Cash Inflows and Outflows from Proposed Projects