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What are mutually exclusive projects?

Updated: 9/11/2023
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Mutually exclusive projects means that the acceptance of one project eliminates the others fromconsideration. Projects are said to be mutually exclusive when tehy cannot be undertaken simultaneously.

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Q: What are mutually exclusive projects?
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Examples of mutually exclusive projects?

The simplest way to explain a mutually exclusive project would be in terms of real estate building. If you were debating whether to build a one or two story house on a plot of land, that is a mutually exclusive project because you cannot build both houses on one plot.


IWhat is the difference between independent project and mutually exclusive project?

Mutually exclusive is the situation in which only one of two projects designed for the same purpose can be accepted and independent projects is a project whose feasibility can be assessed without consideration of any others.


What is the difference between independent and mutually exculusive projects with normal and nonnormal cash flows?

Independent projects are those which are not related or dependent on any other projects while in mutually exclusive projects if one project is selected other project automatically discards


Explain Mutually exclusive event?

cant happen at same time is mutually excusive eventsexamples:Turning left and turning right are Mutually Exclusive (you can't do both at the same time)Tossing a coin: Heads and Tails are Mutually ExclusiveCards: Kings and Aces are Mutually ExclusiveWhat is not Mutually Exclusive:Turning left and scratching your head can happen at the same timeKings and Hearts, because you can have a King of Hearts!


When Projects are mutually exclusive which project should be selected using npv and risk level?

Problems with project ranking: 1. Mutually exclusive projects of unequal size (the size disparity problem) - the NPVdecision may not agree with the IRR or PI. Solution: select the project with the larges NPV (not IRR). 2. The time disparity problem with mutually exclusive projects - NPV and PI assume cash flows are reinvested at the required rate of return for the project. IRR assumes cash flows are reinvested at the IRR. NPV decision may not agree with the IRR. Solution: select the project with the largest NPV. A good method to evaluate and rank project better is to use the Equivalent Annual Annuity (EAA) method. This is like calculating for PMT when doing TVM. It simply means, you will be getting that amount as an inflow each year or period. Therefore, you would want to choose the highest figure.

Related questions

Non mutually exclusive projects?

Non mutually exclusive projects, or independent projects, are projects that can be taken on alongside other projects. They don't interfere with and won't be interfered by other projects' goals.


Which one is more convienent mutually exclusive or non mutually?

It must be "mutually exclusive" since "non mutually" does not even mean anything!


Examples of mutually exclusive projects?

The simplest way to explain a mutually exclusive project would be in terms of real estate building. If you were debating whether to build a one or two story house on a plot of land, that is a mutually exclusive project because you cannot build both houses on one plot.


IWhat is the difference between independent project and mutually exclusive project?

Mutually exclusive is the situation in which only one of two projects designed for the same purpose can be accepted and independent projects is a project whose feasibility can be assessed without consideration of any others.


What is the definition of mutually exclusive events?

The definition of mutually exclusive events is that the events can't occur at the same time. For example, you can't flip a coin and get a head and a tail; they are mutually exclusive events.


What is the difference between independent and mutually exculusive projects with normal and nonnormal cash flows?

Independent projects are those which are not related or dependent on any other projects while in mutually exclusive projects if one project is selected other project automatically discards


Which is more important to the systems components classification schemes that the list be comprehensive or mutually exclusive?

mutually exclusive and comprehensive


What does the term 'mutually exclusive' mean?

The term mutually exclusive refers to 2 or more events of incidents, in which the happening of one event precludes the happening of the other. Mutually exclusive can be applied less formally to the dating world, in which a couple who has been dating become more serious, and therefore mutually exclusive with one another.


Which type of button or box gives a mutually exclusive coice?

A dialog box offers a mutually exclusive choice.


What are some example sentences using mutually?

War and peace are mutually exclusive.


Advantages and disadvantages of internal rate of return?

it can give wrong / misleading answers especially where two mutually-exclusive projects are to be appraised


In maths What is Mutually exclusive probability?

Mutually exclusive means they are independent of one another. So, the two events are independent of one another.