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Sagot :
Projects that involve a choice among competing alternatives, where a selection of one project implies the rejection of all the other alternatives, are mutually exclusive projects. The correct option is c.
When are the projects mutually exclusive?
Mutually exclusive projects are when accepting one investment means rejecting others, even though the latter standing alone may pass muster as good investments, that is to have a positive NPV and a high IRR. There are two causes for the loss of project independence. For Instance, assuming a company has a budget of $60,000 for expansion projects. If available Projects E and F each cost $50,000 and Project G costs only $10,000, then Projects A and B are mutually exclusive.
If the company pursues E, it cannot also afford to pursue F and vice versa.
Learn more about projects, here:
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