Two Events Are Mutually Exclusive

question 99

Multiple Choice

Two events are mutually exclusive

• A)if their intersection is 1
• B)if they have no sample points in common
• C)if their intersection is 0.5
• D)None of these alternatives is correct.

Understand the concept and calculation of the accounting rate of return for investment assessment.

Apply knowledge of various capital budgeting evaluation methods including payback period, net present value (NPV), internal rate of return (IRR), and profitability index.

Calculate and interpret the payback period for capital investments.

Determine the net present value (NPV) of an investment and understand its implications for project selection.

---

Definitions:

Total Costs

The total expense of manufacturing that encompasses all constant and fluctuating costs.

Average Variable Cost

The cost of labor and materials divided by the quantity of output, representing the variable cost per unit of production.

Total Variable Cost

The sum of all costs that vary with output level, including costs such as labor and raw materials.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the total quantity of output produced.