Which of the following is a potential advantage of participative budgeting? A. Managers may be inclined to build slack into the budget. B. Process can become more complex and time consuming with more people involved. C. None of the above are true. D. Managers are more likely to accept budgets they help create.

Consider the following two projects. both have costs of $5,000 in year 1. project 1 provides benefits of $2,000 in each of the first four years only. the second provides benefits of $2,000 for each of years 6 to 10 only. compute the net benefits using a discount rate of 6 percent. repeat using a discount rate of 12 percent. what can you conclude from this exercise?