Which of the following is true of the accept-reject approach?
A) It involves ranking projects on the basis of some predetermined measure, such as the rate of return.
B) It cannot be used when the firm has limited funds.
C) It can be used for making capital budgeting decisions when there is capital rationing.
D) It can be used only for evaluating mutually exclusive projects.
Question 2
Projects that compete with one another, so that the acceptance of one eliminates the others from further consideration are called ________.
A) independent projects
B) mutually exclusive projects
C) replacement projects
D) capital projects
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