A situation in which taking one investment prevents the taking of another is called:
A) Net present value profiling.
B) Operational ambiguity.
C) Mutually exclusive investment decisions.
D) Issues of scale.
E) Multiple rates of return.

Question

Quizplus · Accepted Answer

Mutually exclusive investment decisions occur when choosing one investment option prevents the selection of another. This is because the resources (such as capital or space) used for one investment cannot be used for another, necessitating a choice between the options.

A Situation in Which Taking One Investment Prevents the Taking