If Projects Are Mutually Exclusive

question 85

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) only the net present value method can be used.

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Definitions:

Payment Bond

A type of surety bond that guarantees the payment of subcontractors, laborers, and suppliers on construction projects.

Liens

Legal claims or rights against property or assets that secure the payment of a debt or fulfillment of some obligation.

Suppliers

Entities that provide goods or services to another entity, typically in a business-to-business relationship.

Canceling

involves terminating an agreement, order, or subscription, effectively ending an arrangement or contract.