There are four steps for the selection of capital investment projects 1) Generate alternative capital investment project proposals. 2) Estimate cash flows for each project proposal. 3) Evaluate and choose which investment project to undertake 4) When completed review the investment project to see which assumptions about the project were correct What is the point of looking at the assumptions made after the investment was completed? Would it be better if the review was undertaken at earlier intervals, such as the mid-way point or sooner?

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