Which One of the Following Would Make a Mutually Exclusive

question 104

Multiple Choice

Which one of the following would make a mutually exclusive project unacceptable?

• A) Cash inflow for net working capital at Time 0
• B) Requiring fixed assets that would have no salvage value
• C) An equivalent annual cost that exceeds that of an alternative project
• D) Lack of revenue generation
• E) A depreciation tax shield that exceeds the value of the interest expense

---

Definitions:

Clayton Act

A U.S. antitrust law, enacted in 1914, aimed at promoting competition and preventing unfair business practices.

Competitive Firms

Companies that operate in a market structure characterized by a large number of sellers producing similar but slightly differentiated products, where no single seller has significant market power to determine prices.

Clayton Act

A United States antitrust law, enacted in 1914, designed to prevent anticompetitive practices and monopolies, enhancing the Sherman Antitrust Act.

Exclusive Dealer

An exclusive dealer is a distributor or seller who has been granted the sole rights to sell a manufacturer's products in a specific geographic area or market.