Question

2. Which one of the following is the best example of two mutually exclusive projects? (4 points) a. planning to build a warehouse and a retail outlet side by side using an empty warehouse for storage or renting it entirely out to another firm. b. c. using the company sales force to promote sales of both shoes and socks. buying both inventory and fixed assets using funds from same bond issue. d.

Answer 1

2. Which one of the following is the best example of two mutually exclusive projects? storage or renting it entirely out to anot b. using an empty warehouse for her firm. Explanation: Mutually exclusive projects are those projects where selection of one alternative will automatically result in rejection of another alternative. In the given case, if warehouse is used for storage then it can not be rent out and vice versa hence it is a mutually exclusive project All other projects are independent projects and can be pursued simultaneouly