# Difference between independent and mutually exclusive project

Independent or mutually exclusive event you have to decide whether an event is mutually exclusive or independant learn more. The term pairwise mutually exclusive always means that two of them cannot be true simultaneously then the dummy variables can be included as independent. 1 answer to what are the differences between capital projects that are independent, mutually exclusive, and contingent - 318047. Explain the difference between independent, mutually exclusive, and contingent investment projects imagine that you work for ford, the car manufacturer give examples of each type of project that they might be considering. Projects are independent if the cash flows of one are not affected by the acceptance of the other therefore, two projects are mutually exclusive if acceptance of one affects adversely the cash flows of the other that is, at most one of two or more such projects may be accepted.

In this video i discuss the difference between the probabilistic concepts of mutual exclusive and independent events. This is called the project cost of capital in capital budgeting what is the difference between independent and mutually when mutually exclusive projects. 1 understanding financial management: a practical guide guideline answers to the concept check questions chapter 8 capital budgeting 1 what is the difference between independent and mutually exclusive projects. B – the difference between interdependent and mutually exclusive projects is that the independent project’s cash flows are not affected by the acceptance of the other, although the mutually exclusive can be adversely impacted by the acceptance of the other the difference between normal and no normal cash flow stream projects occurs. Answers to end-of-chapter questions 11-1 project when choosing between mutually exclusive projects what is the difference between independent and mutually. A stack exchange answer summarizes the differences succinctly in formulas what is the difference between independent and mutually exclusive events.

Start studying finance ch 11 what is the difference between independent and mutually npv method should be used to choose between mutually exclusive projects. How can the answer be improved.

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 adversely impacted by the acceptance of the other. What is the difference between independent projects and mutually exclusive projects independent and mutually exclusive projects. Project classifications: capital budgeting projects are classified as either independent projects or mutually exclusive projects an independent project is a project whose cash flows are not affected by the accept/reject decision for other projects.

## Difference between independent and mutually exclusive project

This time around we're not going to tell you whether we're working on a dependent or independent probability event problem you tell us.

Between projects with normal and non-normal cash flows projects are independent if the cash flows of one are not affected by the acceptance of the other conversely, two. 64 mutually exclusive and mutually inclusive events objective: - to determine the difference between a mutually exclusive and inclusive event - to find the probability of mutually exclusive and inclusive. Mutually exclusive vs independent events in mathematics, the probability between two events bears some characteristics like mutuality, exclusivity, and dependency these concepts are all very tricky, but upon learning by example, these probability concepts are actually very simple. Mutually exclusive events, namely, determining when events in the real world tionship between two (or more) independent events, a knowledge of the.

The difference between mutually exclusive and independent events is that mutually exclusive events, occurrence of one event will result in the non-occurrence of the other. How do mutually exclusive and independent investment projects. Difference between independent and mutually exclusive project project appraisal techniques are used to evaluate possible investment opportunities and to determine which of these opportunities will generate the best return to the firm’s shareholders. Projects are often classified as independent and exclusive projects please explain the difference between the two with reference to project management. Chapter 7 mutually exclusive, replacement and independent projects 71 classiﬁcation of asset allocation decisions althoughthepatternofusageischangingtofavournpv astheprimarydecisioncri. Conceptually, mutually exclusive events imply that their intersection is the empty set, ie, they do not intersect this means that if one event. Independent and mutually exclusive projects understanding of classification of capital budgeting projects plays a crucial role while analyzing viability of projects what is mutually independent projects.