12. The first step in the capital budgeting process is A. collection of data. B. idea development. C. assign probabilities. D. determine cashflow. 13. The difference between an investment's market value and its cost is the: A. net present value. B. internal rate of return. C.payback period. D.none of the above. 14.How is an annuity due defined? A. a stream of cash flows occurring for less than one year B. set of equal cash flows occurring at the beginning of each period C. an annuity stream of payments that are disbursed rather than received D. All the above 15. A characteristic of capital budgeting is A. a large amount of money is always involved. B. the internal rate of return must be less than the cost of capital. C. the internal rate of return must be greater than the cost of capital. D. the time horizon is at least five years