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Capital budgeting is a tool used in business to determine the financial viability of a potential project. Net present value, internal rate of return, payback, discounted payback, and modified rate of return are some of the calculations used once businesses have a reliable cash flow budget for their project.
In this assignment, you will demonstrate your understanding of the necessary aspects of capital budgeting.
What is capital budgeting and why is it important to business decisions?
Discuss how the information should be organized in a capital budgeting process, and who will use the information for decision-making.
What could go wrong with the capital budgeting process?
Provide an example of a capital budgeting process from an online source and explain the salient points of this example to the class.
In a minimum of 300-500 words, post your responses using critical thinking and analysis.
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