Two projects which each _____ is an example of mutually exclusive projects.
A) Require an initial investment of $1.5 million.
B) Must occur during the same period of time.
C) Must start up in the same fiscal year.
D) Require the total use of the same limited economic resource.
E) Have differing internal rates of return.

Question

Quizplus · Accepted Answer

Mutually exclusive projects are those that cannot be pursued simultaneously because they compete for the same resources. Choice D, "Require the total use of the same limited economic resource," directly implies that if one project is chosen, the other cannot proceed because they both require the same limited resource, making them mutually exclusive.

Two Projects Which Each _____ Is an Example of Mutually