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1. What is capital budgeting? Why are capital budgeting decisions so important to businesses? 2. What is the purpose of placing capital projects into categories

1. What is capital budgeting? Why are capital budgeting decisions so important to businesses?
2. What is the purpose of placing capital projects into categories such as mandatory replacement, or expansion of existing products, services, or markets?
3. Should financial analysis play the dominant role in capital budgeting decisions? Explain your answer.
4. What are the five steps of capital budgeting analysis?

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