When deciding between mutually exclusive investments,a manager should choose the option with the lowest depreciation.

Question

Quizplus · Accepted Answer

Depreciation is only one factor to consider when comparing mutually exclusive investments. Other factors such as initial cost, operating costs, expected returns, and risk should also be taken into account. Therefore, the decision should be based on a comprehensive analysis of all relevant factors and not just depreciation.

When Deciding Between Mutually Exclusive Investments,a Manager Should Choose the Option