Which of the following does not constitute a stage in the capital budgeting process?
A)Determining the mix of debt and equity to be used to finance the project
B)Forecast of costs and benefits associated with the project
C)Application of an investment evaluation technique to the cash flows of the project to determine acceptability
D)Choosing to accept or reject the project

Question

Quizplus · Accepted Answer

Determining the mix of debt and equity to be used to finance the project is not a stage in the capital budgeting process. It is a decision that comes after the project has been evaluated and accepted. The stages in the capital budgeting process are: Forecast of costs and benefits associated with the project, Application of an investment evaluation technique to the cash flows of the project to determine acceptability, and Choosing to accept or reject the project.

Which of the Following Does Not Constitute a Stage in the Capital