Learning Plan 7AssignmentsLP7.1 Written Assignment: Capital Decision-Making ProcessDirections: In a...

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Learning Plan 7AssignmentsLP7.1 Written Assignment: Capital Decision-Making ProcessDirections: In a minimum of 2 full pages answer the questions provided below.• Please answer the questions in a double-spaced word document.• Remember to cite references APA format1. Explain the four stages of the capital decision-making process.2. Describe how you would determine which projects to fund.3. Explain the importance and details for a projects implementation plan and ongoing evaluation.

David · Accepted Answer

1. Explain the four stages of the capital decision-making process. 
ANSWER   
 The process of capital decision making involves following four stages
1
 
A. Generation of ideas- The process starts with identification of some ideas of 
prospective capital investment. The idea may come from top management, 
employees or even from outside the entity. 
B. Analysis of individual proposals – The details of proposal are to be prepared by 
estimating cash flows from proposal. The analysis involves determining basic data 
required to finalize the decision and the same is proposed to the capital expenditure 
committee for approval. 
C. Planning Capital budget- The final decision on capital spending is taken by the 
committee after applying various techniques of capital budgeting. The proposals may 
be classified as mutually exclusive whereby acceptance of one proposal rejects all 
others. In other cases, unviable or loss making projects are rejected. The other 
proposals are ranked as per relevant technique.

Learning Plan 7Assignments LP7.1 Written Assignment: Capital Decision-Making Process Directions: In a minimum of 2 full pages answer the questions provided below. • Please answer the questions in a...

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