. The importance of capital budgeting and post-audits An Aa a Capital budgeting decisions are among the most important decisions that financial managers make. Indicate whether each of the following statements about capital budgeting is true or false. Statements True False

2. The importance of capital budgeting and post-audits An Aa a Capital budgeting decisions are among the most important decisions that financial managers make. Indicate whether each of the following statements about capital budgeting is true or false. Statements True False
Capital expenditures are long term and expensive. 0 D
An incentive program that enoou rages new ideas. 0 0 whether for new products or better processes. is a good
way to generate capital investment proposals. A post-audit is sometimes overlooked and dismissed as D E’
being of little value.
Capital budgeting is about forecasting the need for cash 0 Q and other short-term assets. Capital projects are either mutually exclusive or independent. which of the following statements are correct? Check
all that apply. E Mutually exclusive projects are projects that, whether accepted or rejected. do not affect the oash flows of
other projects. |:I Acceptance of a mutually exclusive project precludes the acceptance of any competing project. E A project cannot be independent and mutually exclusive at the same time. E Acceptance or rejection of an independent project does not affect the cash flows of other projects. E The decision to accept or reject a project may depend on whether the project is independent or mutually
exclusive.

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