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Evaluate various proposal
6.Implement the proposal
CAPITAL BUDGETING 1 PROCESS
Performance review 1.Identification of investment proposals Screening proposals Evaluation of various proposals Fixing priorities Final approval and preparation of capital expenditure budget 6. 2. 5. Implementing proposal 7. 4. . 3.
Basically. The firm allocates or budgets financial resources to new Investment proposals. evaluating.Kinds of capital budgeting :Capital budgeting refers to the total process of generating. the firm may be confronted with three types of capital budgeting decisions: 1. 3. 2. selecting and following up on capital expenditure alternatives. Accept-Reject Decision Mutually Exclusive Project Decision Capital Rationing Decision .