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Projects that compete with one another, so that the acceptance of one eliminates the others from further consideration are called ________. A. independent projects B. mutually exclusive projects C. replacement projects D. capital projects

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Answer:

The answer is B.

Step-by-step explanation:

In capital budgeting, Companies evaluate the proposed projects at hand. Due to the paucity of fund, all projects wont be selected even if they all have positive net present value is the main determinant in choosing project to invest in.

Mutually Exclusive projects are projects that are competing with one another in which only one will be selected and once this particular project is selected the rest wont be considered again.

Whereas, independent projects are those projects that do not compete with any other project. Its cash flow does not have a negative impact on the others

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