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.

---

Definitions:

Direct Method

A cash flow statement preparation approach that enumerates major classes of gross cash receipts and payments.

Beginning Balance

The amount of money or value available in an account at the start of a new financial period.

Ending Balance

The amount of money or value in an account at the end of a financial period.

Cash Dividend

A payment made by a company out of its profits to its shareholders, usually in the form of cash.