2. 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 regarding capital budgeting is true or false. False Statements True Ideas for capital investment should come from the engineering and sales departments rather than from the finance department. A post-audit is sometimes overlooked and dismissed as being of little value. Capital budgeting is the long-term planning for the purchase of assets whose cash flows extend beyond one year. Effective capital budgeting improves the timing and quality of the assets purchased OOOO Capital projects are either mutually exclusive or independent. Which of the following statements are correct? Check all that apply. The decision to accept or reject a project may depend on whether the project is independent or mutually exclusive. Acceptance or rejection of an independent project does not affect the cash flows of other projects Mutually exclusive projects are projects that, whether accepted or rejected, do not affect the cash flows of other projects. A project cannot be independent and mutually exclusive at the same time. Independent projects are those projects that, if accepted, preclude the acceptance of all other competing projects