Monika's Café wants to expand its dining area and is considering two alternatives. Alternative 1 converts the existing dining area into a buffet line and then builds a new dining area. Alternative 2 builds a new dining area and remodels the current dining area so that one expansive area is created. This is an example of:
A) A crossover point.
B) Mutually exclusive projects.
C) Negatively correlated projects.
D) Independent projects.
E) Multiple IRR projects.

Question

Quizplus · Accepted Answer

Mutually exclusive projects are those where the acceptance of one project necessitates the rejection of another. In this scenario, Monika's Café can either choose Alternative 1 or Alternative 2, but not both, making them mutually exclusive.

Monika's Café Wants to Expand Its Dining Area and Is