Steps of Capital Budgeting Procedure
1. Estimation of Cash flows over the entire life for each of the projects under consideration.
2. Evaluate each of the alternative using different decision criteria.
3. Determining the minimum required rate of return (i.e. WACC) to be used as Discount rate.
Accordingly, this chapter is divided into two section
1. Estimation of Cash Flows
2. Capital Budgeting Techniques
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