Week 3, DQ 3.docx - Properly learning the capital budgeting...

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Properly learning the capital budgeting process is critical for aspiring entrepreneurs. Here are the basics of the capital budgeting process that we have gone through in this week’s lectures and how I could apply these concepts in my entrepreneurial journey: Capital Budgeting Process The capital budgeting process is extremely important. We should learn about the process before taking on a new project. In order to ascertain the viability of a project, we need to know whether it is realistic. The capital budgeting process uses estimations to determine whether you should actually go through with the project or not. Part of the capital budgeting process involves projecting cash flows. You have to determine exactly how much money will be brought in by the potential project and how much money it will cost to run it. Without this information, we cannot accurately make a decision as to whether a project will be profitable.
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