If Projects Are Mutually Exclusive

question 36

Multiple Choice

If projects are mutually exclusive

• A) they can only be accepted under capital rationing.
• B) the selection of one alternative precludes the selection of other alternatives.
• C) the payback method should be used.
• D) the net present-value should be used.

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Definitions:

Investment Decisions

The process of deciding where to allocate resources in order to achieve the highest possible return.

Poor Performing Funds

Funds that consistently generate returns below their benchmark or peer group averages over a specified period.

Category

A classification or grouping based on common characteristics or types, used to organize items or concepts for easier analysis and comparison.

Funds

Financial resources set aside for a specific purpose or investment vehicle pooling investors’ capital for the purpose of investing in securities and other assets.