Which process includes proposal generation and follow-up?

The capital budgeting process is integral to making informed investment decisions regarding long-term assets. This process involves evaluating potential investments or projects to determine their feasibility and anticipated profitability. Proposal generation is a key step in capital budgeting, where various potential projects are identified and assessed based on their expected returns and alignment with the firm's strategic objectives.

Subsequently, the follow-up aspect is crucial as it involves monitoring the progress of approved projects, ensuring they are on track to meet projected financial metrics, and making necessary adjustments. This might include regular reviews of the investment's performance against initial expectations and reassessing the project's viability based on any new information or changes in market conditions.

By focusing on both proposal generation and follow-up, firms can ensure that they are making sound investments that contribute to long-term value creation, thus justifying the selection of the capital budgeting process as the correct response.