In selecting the best group of unequal-lived projects, if the projects are mutually exclusive, the length of the projects lives is not critical.

Question

Quizplus · Accepted Answer

If the projects are mutually exclusive, the length of the project lives becomes critical because it affects the overall profitability of the project. Shorter-lived projects may have higher returns on investment, but if the longer-lived projects produce a higher net present value over their entire lifespan, they should be prioritized over the shorter-lived projects. Therefore, the length of project lives is important to consider while selecting the best group of unequal-lived projects, even if they are mutually exclusive.

In Selecting the Best Group of Unequal-Lived Projects, If the Projects