The first step in the capital budgeting decision process model is to
A)Establish assumptions common for each potential capital investment.
B)Obtain appropriate sources of financing for investments.
C)Identify potential capital investments that agree with the organization's strategy.
D)Manage the control of non-quantitative factors.
E)Analyze the present value of future cash inflow and outflow and relevant qualitative factors.

Question

Quizplus · Accepted Answer

The first step in the capital budgeting decision process model is to identify potential capital investments that agree with the organization's strategy. This helps to ensure that the investments will contribute to the overall goals and objectives of the organization. The other options listed are important steps in the process, but they come after identifying potential capital investments.

The First Step in the Capital Budgeting Decision Process Model