Independent projects are those whose cash flows compete with one another and therefore more than one project needs to be accepted in order to implement the capital budgeting decision.

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Independent projects are those whose cash flows do not compete with one another and therefore only one project needs to be accepted in order to implement the capital budgeting decision. This is in contrast to mutually exclusive projects, where only one project can be accepted because their cash flows compete with one another.

Independent Projects Are Those Whose Cash Flows Compete with One