What is the difference between independent and mutually exclusive projects?
Projects are:
Independent,
if the cash flows of one are unaffected by the acceptance of the other.
Mutually Exclusive,
if the acceptance of one project results in the rejection of another project.
if the cash flows of one are unaffected by the acceptance of the other.
Mutually Exclusive,
if the acceptance of one project results in the rejection of another project.
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[…] NPV and IRR always lead to the same accept/reject decision for independent projects […]
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