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1 FINANCE MCQS

The situation where accepting one project requires rejecting another is called ____________?

  • Present value consent
  • Mutually exclusive
  • Mutual project
  • Mutual consent
Correct Answer: B. Mutually exclusive

Detailed Explanation

When two projects cannot be accepted at the same time because choosing one eliminates the other, they are considered mutually exclusive projects. This situation often arises when projects compete for the same resources or fulfill the same need.

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