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4 June, 08:54

Capital projects are either mutually exclusive or independent. Which of the following statements are correct? Check all that apply.

(A) A project cannot be independent and mutually exclusive at the same time.

(B) Mutually exclusive projects are projects that, whether accepted or rejected, do not affect the cash flows of other projects.

(C) The decision to accept or reject a project may depend on whether the project is independent or mutually exclusive.

(D) Acceptance of a mutually exclusive project precludes the acceptance of any competing project.

(E) Independent projects are those projects that, if accepted, preclude the acceptance of all other competing projects.

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  1. 4 June, 08:58
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    Giving the following information:

    A) A project cannot be independent and mutually exclusive at the same time.

    Incorrect. An independent project means that it can be pursued regardless of another project is made.

    (B) Mutually exclusive projects are projects that, whether accepted or rejected, do not affect the cash flows of other projects.

    Correct.

    (C) The decision to accept or reject a project may depend on whether the project is independent or mutually exclusive.

    Correct.

    (D) Acceptance of a mutually exclusive project precludes the acceptance of any competing project.

    Correct.

    (E) Independent projects are those projects that, if accepted, preclude the acceptance of all other competing projects.

    Incorrect. Independent projects stand alone from other projects.
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