#analyst-notes #cfa-level-1 #corporate-finance #introduction #reading-35-capital-budgeting
The typical steps in the capital budgeting process:
- Generating good investment ideas to consider.
- Analyzing individual proposals (forecasting cash flows, evaluating profitability, etc.).
- Planning the capital budget. How does the project fit within the company's overall strategies? What's the timeline and priority?
- Monitoring and post-auditing. The post-audit is a follow-up of capital budgeting decisions. It is a key element of capital budgeting.