Due to the fact that a good project can go worse if the expenditures are not carefully monitored or controlled, this step is the critical benefit of the procedure of the capital budgeting (Goodman, et al., 2013).
Formation of choice –when the capital process budgeting is put in place, a company is capable of creating a set of choices that can classify the type of the project which are unacceptable or acceptable. The outcome is a more effectively run company that is better armed to quickly ascertain if or not to proceed further with the project or close it down in the process, hence saving the business both effort and time (Goodman, et al.,