A situation in which accepting one investment prevents the acceptance of another investment is called the:
A)net present value profile.
B)operational ambiguity decision.
C)mutually exclusive investment decision.
D)issues of scale problem.
E)multiple rates of return decision.

Question

Quizplus · Accepted Answer

A mutually exclusive investment decision is a situation in which accepting one investment precludes the acceptance of another investment because the projects are not compatible with each other. In other words, choosing one option means the other option cannot be chosen. This is different from independent projects, where the acceptance of one project does not affect the acceptance of another project. The other options listed are not relevant to this scenario.

A Situation in Which Accepting One Investment Prevents the Acceptance