Mutually exclusive projects are best defined as competing projects that:
A) would need to commence on the same day.
B) have the same initial start-up costs.
C) both require the total use of the same limited resource.
D) both have negative cash outflows at time zero.
E) have the same life span.

Question

Mutually exclusive projects are best defined as competing projects that: 
A) would need to commence on the same day. 
B) have the same initial start-up costs. 
C) both require the total use of the same limited resource. 
D) both have negative cash outflows at time zero. 
E) have the same life span.

Quizplus · Accepted Answer

Mutually exclusive projects are projects that cannot be undertaken simultaneously because they require the exclusive use of the same limited resource. This means that if one project is selected, the other project(s) cannot be undertaken. Therefore, the correct option is C, which states that mutually exclusive projects require the total use of the same limited resource. The other options (A, B, D, and E) are incorrect because they do not accurately describe mutually exclusive projects.

Mutually Exclusive Projects Are Best Defined as Competing Projects That