The final decision on which one of two mutually exclusive projects to accept ultimately depends upon which one of the following?
A)initial cost of each project
B)timing of the cash inflows
C)total cash inflows of each project
D)required rate of return
E)length of each project's life

Question

Quizplus · Accepted Answer

The final decision on mutually exclusive projects depends on the required rate of return, as it is used to discount future cash flows to determine the net present value (NPV) of each project. The project with the higher NPV, given the required rate of return, is typically chosen.

The Final Decision on Which One of Two Mutually Exclusive