If Capital Projects Are Mutually Exclusive,which of the Following Statements

question 8

Multiple Choice

If capital projects are mutually exclusive,which of the following statements is TRUE?

• A)Acceptance of one project means the firm will reject the other mutually exclusive projects.
• B)The NPV rule still applies as a decision-making process.
• C)The IRR rule may be inconsistent in rank order with the NPV rule when choosing among mutually exclusive projects.
• D)All of the above.

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Definitions:

Managers

Individuals in an organization responsible for planning, directing, and overseeing the operations and activities of a team or department to achieve the set goals.

Resources

Essential assets or materials needed to carry out tasks, projects, or achieve goals.

Subunit Power

The extent of influence that a department or division within an organization has over decisions and resource allocations.

Resources

Assets, materials, or valuable items that individuals or organizations possess and can utilize to achieve specific goals or tasks.