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

Statements	True	False
Investing in capital assets is important to staying competitive.
Capital expenditures are long term and expensive.
A post-audit is an important step in the capital budgeting process.
Ideas for capital investment should come from the engineering and sales departments rather than from the finance department.

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

By definition, they are not also independent projects

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

Project choices that rule out competing project choices

Those projects that are best analyzed without considering the time value of money