The final decision on which one of two mutually exclusive projects to accept ultimately depends upon the:
A) Initial cost of each project.
B) Required discount rate.
C) Total cash inflows of each project.
D) Assigned payback period of each project.
E) Length of each project's life.

Question

Quizplus · Accepted Answer

The final decision on mutually exclusive projects depends on the required discount rate, as it is used to calculate the net present value (NPV) of each project, which is a key factor in determining which project to accept.

The Final Decision on Which One of Two Mutually Exclusive