Two projects are considered to be independent if
A) selecting one does not affect whether the other is accepted or not.
B) their cash flows are unrelated.
C) Both a and b
D) None of the above

Question

Quizplus · Accepted Answer

The definition of independent projects is that they are unrelated in terms of acceptance and cash flows. Therefore, both option A and B are correct, making option C the best choice. Option D is incorrect because independent projects do exist and have specific characteristics.

Two Projects Are Considered to Be Independent If