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There are several stages in the life cycle of a project: (1) project selection, (2) planning, (3) execution, and (4) termination (Ruhl, 1988). The first phase, project selection, will vary among firms. Each project must be evaluated to determine which is the best use of corporate funds. Each will have different risks, benefits, and costs, making the selection very difficult. The final decision should be based on the project's financial return and how well it assists the organization in achieving its long-run strategic objectives.

Once a selection has been made, formal plans must be developed. The importance of thorough

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