The first step in the capital budgeting decision process model is to
A) establish assumptions common for each potential capital investment.
B) obtain appropriate sources of financing for investments.
C) identify capital expenditures relevant to accomplishing strategic goals.
D) manage the control of non-quantitative factors.
E) analyze the present value of future cash inflow and outflow and relevant qualitative factors.

Question

Quizplus · Accepted Answer

The first step in the capital budgeting decision process model is to identify capital expenditures relevant to accomplishing strategic goals. This step involves determining which projects or investments are in line with the company's overall strategy and goals. Once these capital expenditures are identified, they can be further analyzed and evaluated using financial and non-financial criteria to determine which investments should be pursued.

The First Step in the Capital Budgeting Decision Process Model