Which of the following is one of the steps in the Capital Budgeting Process?

In the Capital Budgeting Process, proposal generation is a crucial step that involves identifying and creating potential investment opportunities. This stage is essential because it sets the foundation for the entire budgeting process, enabling a company to evaluate which projects or investments could yield a favorable return. Generating proposals allows decision-makers to gather a diverse range of investment options, which can then be assessed for feasibility and alignment with the company's strategic goals.

This step typically includes brainstorming sessions, discussions among departments, and the collection of ideas regarding new projects or potential upgrades to existing assets. Once proposals are generated, the company can move on to more detailed analysis phases, such as cash flow forecasting, risk assessment, and ultimately making investment decisions.

While investment depreciation review and market analysis are important in assessing and understanding investments, they come after proposals have been generated. Risk assessment is also a critical part of the process, but it follows the initial step of generating and compiling proposals for evaluation.