Begin by listing the five stages in capital budgeting, in proper order, and then briefly describe each stage. Stage Description as it relates to capital budgeting 7 Step 1 Step 2 Step 3 Step 4 Step 5 Computing the AARR Computing the IRR Computing the NPV Determining the payback period Discounting cash flows Evaluation Financing, implementation, control Forecasting Identification Information-acquisition Description as it relates to capital budgeting Capital budgeting methods are used to choose the best alternative for the firm. Determine capital investments available to accomplish organization objectives, strategies. Fund projects, get them under way and monitor their performance. Gather data from all parts of the value chain to evaluate alternative capital investments. Project the future cash flows attributable to the various capital projects