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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
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. Capital budgeting is the long-term planning for the purchase of assets whose cash flows extend beyond one year. Post-audits are generally a waste of time, because it is nearly impossible for actual results to match forecasted results. An incentive program that encourages new ideas, whether for new products or better processes, is a good way to generate capital investment proposals. A post-audit involves comparing actual results with forecasted results. Capital projects are either mutually exclusive or independent. Which of the following statements are correct? Check all that apply. A project cannot be independent and mutually exclusive at the same time. Acceptance of a mutually exclusive project precludes the acceptance of any competing project. Mutually exclusive projects are projects that, whether accepted or rejected, do not affect the cash flows of other projects. Independent projects are those projects that, if accepted, preclude the acceptance of all other competing projects. Acceptance or rejection of an independent project does not affect the cash flows of other projects
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