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Please answer questions 10-15.

10) If you have $10,000 to invest and you evaluate two mutually exclusive projects each requiring $10,000 of capital and both

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Answer #1

10)

When projects are mutually exclusive, only one project can be selected. Accepting one project precludes accepting of remaining projects. Hence, only project with highest positive NPV will be accepted.

10b)

If projects are independent, all the projects with positive NPV will be accepted.

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