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. True False Statements Effective capital budgeting improves the timing and quality of the assets purchased. A post-audit is sometimes overlooked and dismissed as being of little value Capital budgeting involves planning and forecasting cash flows, sometimes many years into the future Ideas for capital investment should come from the engineering and sales departments rather than from the finance department. C Capital projects are either mutually exclusive or independent. Which of the following phrases correctly describe independent projects? Check all that apply. D Projects that, whether accepted or rejected, do not affect the cash flows of other projects O Those projects that, if accepted, preclude the acceptance of all other competing projects Project choices that do not rule out competing project choices O By definition, they are not also mutually exclusive projects O Those projects that are best analyzed without considering the time value of money