Which one of the following statements concerning capital budgeting is not true?

• Capital budgeting uses after-tax cash flows in the analysis of proposed investments.

• A basic objective underlying capital budgeting is to select assets that will earn a satisfactory return.

• Because of the existence of advanced forecasting techniques, capital budgeting is based on precise estimates of future events.

• Capital budgeting is the process of identifying, evaluating, selecting, and controlling long-term investment projects.

• Capital budgeting involves estimating the revenues and costs of each proposed project, evaluating their merits, and choosing those worthy of investment.