14) The capital budgeting process consists of four distinct but interrelated steps: proposal

and analysis, deCision making. and iermination.

generation.FALSE
Answer:
revicw
Process
pieeps in Capital Budgeting
Question tatus: KeviSe
AACSB Guidelines: Reflective thinking skils

15) Independent projects are projects that compete with one another tor the firm's resources, so
that the acceptance of one eliminates the others from further constderation.
Answer: FALSE

inadependent Projects
Question Status: RevISed
AACSB Guidelines: Reflective thinking skills

cash low pattem associatcd with capital investment projects consists of

T6) A non-conventional
an initial outilow lollowed by a series of inlows.

Aswer: FALSE
Nonconvenlional Cash Flows
Tpic: Conventional
versus

Question Status: Keviseu

AACSB Guidelines: Reflective thinking skills

17) If'a firm has unlimited fiunds to invest in capital assets. all independent projcts thal meet its
minimum investment eriteria should be implemented.
Answer: TRUE
oncept or Capital Budgeting
pic
Question Status: Revised
AACSB Guidelmes: Retlective thinking skills

18) The following three projects would seem to compete with one another form the lirms
of mutually exclusive projecls.
resources and therefore would be examples
()installing air condition1ng the plant
in

small
supplier
(2) acquiing a
O) purendsing a new coipulcr system

Answer: FALSE

Tapic: Mutually Exchusive Projects

Question Status: RevISCd skils
AACSB Giuidclines: Reflective thinking
19) 1f a firm has unlimited funds to invest, all the mutually exclusive projects that meet is

minimum investment criteria can be impiemenlcd.

Answer: FALSE
Topic: Mutually Exchusive Projects
Question Status: Revised
AACSB Guidelines: Reflective think ing skills

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