Which of the following is a characteristic of independent projects?
A) The cash flows are related.
B) The cash flows are unrelated.
C) Selecting one would automatically eliminate accepting the other.
D) None of the above

Question

Quizplus · Accepted Answer

Independent projects are characterized by unrelated cash flows, meaning the acceptance or rejection of one project has no impact on the others. Therefore, option B is the correct answer. Option A is incorrect because related cash flows are a characteristic of mutually exclusive projects, not independent ones. Option C is also incorrect because independent projects can be accepted or rejected without affecting the other projects. Option D is incorrect because there is a characteristic of independent projects, as explained above.

Which of the Following Is a Characteristic of Independent Projects