Final answer:
The statement is 'False' because if two projects are mutually exclusive, the firm can only accept one, not both, since they compete for the same limited resources.
Step-by-step explanation:
The statement given is 'False'. In the context of evaluating projects, when two projects are described as mutually exclusive, it means that only one of the projects can be accepted. If a firm is faced with mutually exclusive projects, it has to choose one and reject the other because the projects compete with each other in some way—generally because they achieve the same objective and the firm has limited resources.
For example, if a company has a budget to either upgrade its existing machinery or to expand its production capacity, but not both, these two projects are mutually exclusive. The company must analyze which project brings more value and aligns better with its strategic goals before making a decision. They cannot accept both projects as they require the allocation of the same limited resources.
Therefore, the correct answer to the question is 'b) False'.