1.Identify Potential Opportunities:The first step in the capital budgeting process is to identify the opportunities that you have. Many times, there is more than one available path that your company could take.//
2. Evaluate Opportunities:Once you have identified the reasonable opportunities, you need to determine which ones are the best. Look at them in relation to your overall business strategy and mission. //
3. Cash Flow: Next, you need to determine how much cash flow it would take to implement a given project. You also need to estimate how much cash would be brought in by such a project.//
4. Select Projects: After you look at all of the possible projects, it is time to choose the right project mix for your company. Evaluate all of the different projects separately on their own merits. You need to come up with the right combination of projects that will work for your company immediately.//
5. Implementation: Once the decisions have been made, it is time to implement the projects. Implementation is not really a budgeting issue, but you will have to oversee everything to be sure it is done correctly.
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