Mutually Exclusive Projects Occur When

question 82

Multiple Choice

Mutually exclusive projects occur when

• A) projects have uneven cash flows.
• B) more than one firm can use the projects.
• C) a set of investment proposals perform essentially the same task.
• D) projects are independent.

---

Definitions:

Stock Index Futures

Futures contracts to buy or sell a specific stock index at a predetermined price on a specified future date, used for hedging or speculating on the direction of the stock market.

Multiplier

A concept in economics referring to the factor by which a change in investment, government spending, or other economic activity results in a larger change in the gross domestic product (GDP).

Dollars

A unit of currency used in the United States and other countries, symbolized as $.

S&P 500 Index

A market-capitalization-weighted index of the 500 largest U.S. publicly traded companies and is often used as a benchmark for the overall stock market.