Statement no. 1: The capital budgeting decision involves the planning of expenditures for a project with a life of at least one year.

Statement no. 2: The capital expenditure decision requires extensive planning to ensure engineering and marketing information is available, product design completed, necessary patents are acquired, and the capital markets are tapped for the necessary funds.

a.Both statements are true.

b.First statement is true, second statement is false.

c.First statement is false, second statement is true.

d.Both statements are false.