8-3 Capital Budgeting Process Capital budget- The list of planned Investment projects The Decision process 1- Develop and rank all investment projects 2- Authorize projects based on Govt regulation Production efficiency Capacity requirements NPV Irwin/McGraw-Hill CThe McGraw-Hill Companies, Inc, 2001©The McGraw-Hill Companies, Inc.,2001 8- 3 Irwin/McGraw-Hill Capital Budgeting Process Capital Budget - The list of planned investment projects. The Decision Process 1 - Develop and rank all investment projects 2 - Authorize projects based on: • Govt regulation • Production efficiency • Capacity requirements • NPV