Each of the following statements is true regarding capital budgeting decisions, except:

a. Capital expenditure proposals involve risk.

b. Acommon error is to invest in unnecessary or overly complex equipment.

c. Capital budgeting models cannot be relied on when a project is projected to have cash flows over a period of time greater than 3 years.

d. When anumber of activities drive manufacturing overhead costs, estimates of overhead cost based on a single activity driver can significantly overestimate cost savings.