(TCO H) Capital projects are a critical part of governmental activities at the federal, state and local level. The steps in the capital budgeting process are significant part of selecting projects from many competing potential projects in a world of limited resources.

(A) Describe and explain the steps in the capital budgeting process. Provide two examples of each. (15 points)

(B) Under what circumstances might a governmental unit select a project that is not high on the preference list? (15 points)