Final answer:
Mutually exclusive capital projects preclude the acceptance of competing projects, are not independent by definition, and their choices rule out the choices for other competing projects. The understanding of mutually exclusive and independent projects is crucial when making capital budgeting decisions.
Step-by-step explanation:
When evaluating capital projects, it's important to understand the difference between mutually exclusive and independent projects. Mutually exclusive projects are those where acceptance of one project rules out the acceptance of another. Given the phrases provided in the question, the ones that correctly describe mutually exclusive projects are:
- The projects that, if accepted, preclude the acceptance of all other competing projects.
- By definition, they are not also independent projects.
- Project choices that rule out competing project choices.
Conceptually, mutually exclusive events or projects are such that if one event occurs or one project is undertaken, it cannot co-occur or coexist with another event or project. On the other hand, independent projects are those where the acceptance or rejection of one project does not affect the cash flows of other projects and therefore does not impact the decision-making process regarding the other projects.