Projects that compete with one another, so that the acceptance of one eliminates the others from further consideration are called ________.
A) independent projects
B) mutually exclusive projects
C) replacement projects
D) capital projects

Question

Quizplus · Accepted Answer

Mutually exclusive projects are those projects that are in competition with each other, and accepting one project automatically eliminates the others from being considered. This is because the projects are pursuing the same resources and outcomes, so only one can be chosen. Independent projects are not in competition with each other, and accepting one does not affect the consideration or acceptance of the others. Replacement projects are a type of mutually exclusive project where a new project is selected to replace an existing one. Capital projects refer to all long-term investments made by a company, including mutually exclusive, independent, and replacement projects.

Projects That Compete with One Another, So That the Acceptance