20) Mutually exclusive projects are projects whose cash flows are unrelated to one another, the

acceptance of one does not eliminate the others from further consideration.
Answer: FALSE
Topic: Mutually Exchusive Projeccts
Question Status: Revised
AACSB Guidelines: Reflective thinking skills

21) To increase its production capacity. a firm is considering: 1) to expand ifs plant, 2) to acquire
1 production. These three projects
another company. or 3) to contract With anotheT company
would appear to be good examples of independent projects.
Answer: FALSE

Topic: Independent Projects

Question Status: Revised
AACSB Guidelines: Relective thinking skills

22) Independent projects are those whose cash lows are unrelated to one another; the acceptance
of one does not eliminate any others from further consideration.
Answer: TRUE
Topic: Independent versus Mutually Exclusive Projects
Question Status: Revised
AACSB Guidelines: Reflective thinking skills

23) Mutually exclusive projects are those whose cash flows are unrelated to one another, the
acceptance ol one docs not eliminate any others irom lurther consderation.
Answer: FALSE
Topic: Independent versus Mutualy Exclusive Projects
Question Status: RevISed
AACSB Guidelines: Reflective thinking skills

24) Mutually exclusive projects are those whose cash flows compete with one another, the
acceptance ot one does not eliminate any others Irom lurther consideration.
Answer: FALSE
Topic: Independent versus Mutually Exclusive Projects
Question Status: Revised
AACSB Guidelines: Rellective thinking Skils

25) Mutually exclusive projects are those whose cash flows compete with one another, the
acceptance of one eliminates others from further consideration.
Answer: TRUE
Topic: Independent versus Mutually Exclusive Projects
Ouion Sat Revised
AACSB Guidelines: Reflective thinking skils

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