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

The two alternatives are mutually exclusive, meaning that only one can be chosen. Therefore, the best choice is to select either Alternative 1 or Alternative 2, but not both. The decision depends on factors such as cost, feasibility, and profitability, which should be evaluated thoroughly before making a final decision.

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