Final answer:
False. When evaluating two mutually exclusive projects, a firm cannot accept both projects.
Step-by-step explanation:
False. When evaluating two mutually exclusive projects, a firm cannot accept both projects. Mutually exclusive projects are projects that cannot be pursued simultaneously because choosing one project means forgoing the other. For example, if a firm is considering investing in two different manufacturing plants in different locations, they can only choose one location to invest in. Mutually exclusive is a statistical term describing two or more events that cannot happen simultaneously. It is commonly used to describe a situation where the occurrence of one outcome supersedes the other. Mutually exclusive projects are those where the acceptance of one project precludes the acceptance of another. This is typically due to limited resources such as capital, or because the projects compete directly with each other.