2. The importance of capital budgeting and post-audits

Indicate whether each of the following statements is true or false.

Statements	True	False
Investing in capital assets is important to staying competitive.
Capital budgeting involves planning and forecasting cash flows, sometimes many years into the future.
A post-audit involves comparing actual results with forecasted results.
Post-audits are generally a waste of time, because it is nearly impossible for actual results to match forecasted results.

Capital projects are either mutually exclusive or independent. Which of the following phrases correctly describe mutually exclusive projects? Check all that apply.

Those projects that, if accepted, preclude the acceptance of all other competing projects

By definition, they are not also independent projects

Those projects that, if rejected, preclude the acceptance of all other competing projects

Project choices that rule out competing project choices

2. The importance of capital budgeting and post-audits Indicate whether each of the following statements is true or false. Capital projects are either mutually exclusive or independent. Which of the following phrases correctly describe mutually exclusive projects? Check al that apply. Those projects that, if accepted, preclude the acceptance of all other competing projects By definition, they are not also independent projects Those projects that, if rejected, preclude the acceptance of all other competing projects Project choices that rule out competing project choices