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 are investments where choosing one investment option prevents the possibility of taking another investment option. It is a common scenario in capital budgeting where there are limited resources and projects have to compete for those resources.

A Situation in Which Taking One Investment Prevents the Taking