Ideas for capital investments can come from many sources both inside and outside the firm, and from all levels in the firm. Most medium- and large-sized firms have departments to accomplish this, which include cost accounting, industrial engineering, marketing research and development, and corporate planning.
Imagine you were in a senior leadership position for a large company. Explain how you might construct a capital budgeting process for your firm, and what kinds of decision rules you might adopt to facilitate that process.
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