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Explain capital budgeting and then briefly discuss each of the five stages of a capital budgeting project?
Balance Sheet Item
An individual entry, such as assets, liabilities, or equity, that appears on the balance sheet, detailing a company's financial position at a specific point in time.
Total Assets
The sum of all resources owned by an entity, reflected on its balance sheet.
Return On Assets
A profitability ratio that measures how effectively a company uses its assets to generate profit, calculated as net income divided by total assets.
Profit Margin
a financial metric that shows the percentage of revenue remaining after all costs, expenses, and taxes have been deducted, indicating the efficiency and profitability of a company.
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