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.
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.
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.
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
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!
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.
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.
It must be "mutually exclusive" since "non mutually" does not even mean anything!
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.
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.
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.
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
mutually exclusive and comprehensive
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.
A dialog box offers a mutually exclusive choice.
War and peace are mutually exclusive.
it can give wrong / misleading answers especially where two mutually-exclusive projects are to be appraised
Mutually exclusive means they are independent of one another. So, the two events are independent of one another.