10. The importance of capital budgeting and post-audits 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. \begin{tabular}{|l|} \hline Statements \\ \hline A post-audit is an important step in the capital budgeting process. \\ \hline Capital budgeting involves planning and forecasting cash flows, sometimes many years into the future. \\ \hline Ideas for capital investment should come from the engineering and sales departments rather than from the finance department. \\ \hline An incentive program that encourages new ideas, whether for new products or better processes, is a good way to generate capital investment proposals. \\ \hline \end{tabular} Capital projects are either mutually exclusive or independent. Which of the following phrases correctly describe mutually exclusive projects? Check all that apply. Project choices that rule out competing project choices Those projects that, if rejected, preclude the acceptance of all other competing projects Projects that, whether accepted or rejected, do not affect the cash flows of other projects Those projects that are best analyzed without considering the time value of money Those projects that, if accepted, preclude the acceptance of all other competing projects