a. Approval of the capital budget allows manager to go ahead with any project included in the

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a. Approval of the capital budget allows manager to go ahead with any project included in the budget.
b. Project authorizations are mostly developed "bottom-up." Strategic planning is a "top-down" process.
c. Project sponsors are likely to be overoptimistic.
d. The problem of over optimism in cash-flow forecasts can always be solved by setting a higher discount rate.
True or false? Discuss.
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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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