Problem $10-2$ The Capital Budget $($LO$1,2)$

State whether the following statements are true or false.

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

b$.$ Managers need to ensure that strategic investment proposals exploit the firm's competitive advantage.

c$.$ Project sponsors are likely to be overoptimistic.

d$.$ By imposing expenditure limits$,$ management forces pro, it sponsors to set priorities.