Capital budgeting involves

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Capital budgeting involves all of the following steps, except:

a. Estimate the cash flows expected to be generated during the life of the assets.

b. Compute present value of the investment’s value.

c. Compare the present value annuity of the future value annuity required cash flows with the expected cash value.

d. Evaluate the riskiness of the projected cash flows to determine the appropriate rate of return.

Reference no: EM13951742

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