Suppose there is an election for Soft Drink Commissioner. The field consists of one candidate from the Pepsi party and four from the Coca-Cola party. This would seem to indicate a strong preference for Coca-Cola among the voting population, but the Pepsi candidate ends up winning in a landslide. Why does this happen?
Corporate Finance for CFA Session 01 1 Capital Budgeting Master 1 AFI/CFA Skema Business School Professeur Sébastien DEREEPER LOS a : Describe the capital budgeting process and distinguish among the various categories of capital projects. 2 Capital budgeting is the process of evaluating capital projects, projects with cash flows over more than one year. The four steps of the capital budgeting process are: (1) Generate investment ideas; (2)Analyze project ideas; (3) Create firm-wide capital budget; and (4) Monitor decisions and conduct a post-audit. Categories of capital projects include: (1) Re