Answer
See explanation
Work Step by Step
Steps that can be take to incorporate the intangible benefits into the capital budget evaluation process are as follow:-
1. Calculate net present value ignoring intangible benefits. Then, if the NPV is negative, ask whether the project offers any intangible benefits that are worth at least the amount of the negative NPV.
2. Project rough, conservative estimates of the value of the intangible benefits, and incorporate these values into the NPV calculation.
