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Unformatted text preview: usiness,” Business Finance
(September 2001), downloaded from
www.businessfinance.com; Sam Greengard,
“IT: Luxury or Necessity?” Industry Week
(December 1, 2001), downloaded from
www. industryweek.com; and Ivy
McLemore, “High Stakes Game,” Business
Finance (May 1999), downloaded from
www.businessfinance.com. Independent versus Mutually Exclusive Projects
Projects whose cash flows are
unrelated or independent of one
another; the acceptance of one
does not eliminate the others
from further consideration.
mutually exclusive projects
Projects that compete with one
another, so that the acceptance
of one eliminates from further
consideration all other projects
that serve a similar function.
The financial situation in which
a firm is able to accept all
independent projects that
provide an acceptable return. The two most common types of projects are (1) independent projects and (2)
mutually exclusive projects. Independent projects are those whose cash flows are
unrelated or independent of one another; th...
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This document was uploaded on 01/19/2014.
- Fall '13