A situation in which accepting one investment prevents the acceptance of another investment is called the:
A) net present value profile.
B) operational ambiguity decision.
C) mutually exclusive investment decision.
D) issues of scale problem.
E) multiple choices of operations decision.

Question

Quizplus · Accepted Answer

A mutually exclusive investment decision is one in which accepting one investment precludes the acceptance of another investment. This could occur when two potential investments use the same resources or have incompatible goals. Therefore, the best choice is C.

A Situation in Which Accepting One Investment Prevents the Acceptance