The key elements of the capital budgeting process include project identification, cash flow estimation, risk assessment, determination of discount rate, and decision-making based on calculated metrics such as net present value (NPV) or internal rate of return (IRR). For example, suppose a retail company is considering opening a new store location. They would first identify the potential project, estimate the initial investment costs, forecast cash flows over the store's lifespan, assess risks such as competition and market demand, determine the appropriate discount rate based on the company's cost of capital, and ultimately evaluate the NPV or IRR to decide whether the investment is financially viable and aligns with the company's strategic goals