Question

You are asked to generate items for inclusion in the capital budget. Please include all steps needed for the capital budgeting process including justification and evaluation of proposals

Answer 1

STEPS OF CAPITAL BUDGETING

IDENTIFICATION AND EVALUATION OF THE POTENTIAL OPORTUNITIES

WHEN YOU ARE PLANNING TO DO A CAPITAL BUDGETING, START WITH EVALUATION OF THE OPORTUNITIES IN THE PERTICULAR AREA OF PLANNING

ESTIMATION OF THE COST FOR IMPLEMENTATION

THE TOTAL COST OF IMPLEMENTING THE PLAN IS ESTIMATED ACCORDING TO PRIOR STUDIES, INCIDENTS, AND DOCUMENTED RECORDS

ESTIMATION OF THE SPENDINGS OF AMOUNT

ESTIMATION OF THE CASH FLOW , THAT WERE THE MONEY IS GOING TO SPEND AND HOW MUCH IS GOING TO SPEND

ASSESMENT OF THE RISK OF SPENDING MONEY,

CHECK THE RISK OF SPENSING MONEY ACCORDING TO TIME, PLACE AND MARKET VALUES

IMPLEMAENTATION OF THE PLAN OR CAPITAL BUDGETING

THE FINAL STAGE IN WHICH THA PLAN

Steps of capital budgeting

Identification and evaluation of the potential opportunities

When you are planning to do a capital budgeting, start with evaluation of the opportunities in the particular area of planning

Estimation of the cost for implementation

The total cost of implementing the plan is estimated according to prior studies, incidents, and documented records

Estimation of the spending of amount

Estimation of the cash flow, that were the money is going to spend and how much is going to spend

Assessment of the risk of spending money,

Check the risk of spending money according to time, place and market values

Implementation of the plan or capital budgeting

The final stage in which the plan is fixed after all the above stages and assessments

Justification is the proof and documents to justify the proposed plan for being implemented

Evaluation is the critical checking of the proposal to find out problems or risk factors associated with it

IS FIXED AFTER ALL THE ABOVE STAGES AND ASSESSMENTS

JUSTIFICATION IS THE PROOF AND DOCUMENTS TO JUSTIFY THE PROPOSED PLAN FOR BEING IMPLEMENTED

EVALUATION IS THE CRITICAL CHECKING OF THE PROPOSAL TO FIND OUT PROBLEMS OR RISK FACTORS ASSOCIATED WITH IT