Mutually exclusive projects are best defined as competing projects which:
A)would commence on the same day.
B)have the same initial start-up costs.
C)both require the total use of the same limited resource.
D)both have negative cash outflows at time zero.
E)have the same life span.

Question

Quizplus · Accepted Answer

Mutually exclusive projects are those where selecting one project means the other project cannot be pursued. This is usually because they require the total use of the same limited resource. Thus, choice C is the best option as it reflects this definition. The other choices may partially overlap with the concept of mutually exclusive projects, but they are not as accurate or complete.

Mutually Exclusive Projects Are Best Defined as Competing Projects Which