Topic: How to Evaluate Mutually Exclusive Projects
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What are mutually exclusive projects?
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. Read More »
Source: http://wiki.answers.com/Q/What_are_mutually_exclusive_projects
Which technique is used to deal with the choice between mutually ...
Equivalent Annual Costing (EAC) if Liability, or Equivalent Annual Cash-Flow (EACF) if investment. We calculate the Present Value of the project by discounting back each cash-flow from each year at the discount rate, then multiple the sum o... Read More »
Source: http://wiki.answers.com/Q/Which_technique_is_used_to_deal_with_th...
When Projects are mutually exclusive which project should be sele...
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... Read More »
Source: http://wiki.answers.com/Q/When_Projects_are_mutually_exclusive_wh...
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RAGHAVA, HERE IS SOME USEFUL MATERIAL. OTHER QUESTIONS ARE OUT OF MY EXPERTISE AREA. REGARDS LEO LINGHAM Q1. What do you mean by ‘accounting’? Explain the various concepts of accounting and the need for having accounting standards? H...
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Source: http://en.allexperts.com/q/Careers-Business-1481/2009/10/assignme...
It all depends on the variation in the size of net cash flows When the projects have high variance in the size of net cash flows, we would prefer to use NPV alone When projects have unequal life span we prefer to use NPV instead of IRR sinc...
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Source: http://answers.yahoo.com/question/index?qid=20101102053008AAJz1Pm
the project with the highest npv should be chosen, npv is a better measure then irr.. So npv should be used
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Source: http://uk.answers.yahoo.com/question/index?qid=20071123031437AA6v...
Independent means neither events depend on each other, they go on their own course by themselves. Mutually exclusive is when two things cannot coexist at the same time.
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Source: http://answers.yahoo.com/question/index?qid=20080809111402AAHPgVG
Either one is fine. They are actually just variations of each other. You can use IRR to determine the annual rate of return given by a project assuming that the project will one day end. For example if I have an investment which makes $100 ...
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Source: http://answers.yahoo.com/question/index?qid=20100728210726AA9TMwS
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Source: http://www.askmehelpdesk.com/finance-accounting/caledonia-conside...
What is the difference between independent and mutually exclusive projects? Independent projects – if the cash flows of one are unaffected by the acceptance of the other. Mutually exclusive projects – if the cash flows of one can be adverse...
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Source: http://www.authorstream.com/Presentation/ebenyu-492538-capital-bu...
