Differentiate between independent projects and mutually exclusive projects.

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Answer 1

Question

Chapter 12, Problem 1DQ

To determine

Differentiate between independent projects and mutually exclusive projects.

Expert Solution & Answer

Explanation of Solution

Independent Projects and Mutually Exclusive Projects:

When acceptance or rejection of a project does not affect the cash flows of other projects, it is known as an independent project whereas when acceptance of a project disqualifies all other contesting projects, it is known as a mutually exclusive project.

Basis	Independent Projects	Mutually Exclusive Projects
Effect on other projects	The acceptance or rejection of independent projects does not affect the acceptance of rejection of other projects.	The acceptance of a mutually exclusive project disqualifies all the other competing projects.
Number of projects	More than one independent project may be accepted at a given time.	Only one mutually exclusive project can be accepted at a particular time.
Cash flow	The acceptance of an independent project does not affect the cash flows of the other independent projects.	The acceptance of a mutually exclusive project affects the cash flows of other projects.

Table (1)

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CUMULATIVE COMPREHENSION PROBLEM: ECHO SYSTEMS (This comprehensive problem was introduced in Chapter 2 and continues in Chapters 4 and 5. If the Chapter 2 segment has not been completed, the assignment can begin at this point. You need to use the facts presented in Chapter 2. Because of its length, this problem is most easily solved if you use the Working Papers that accompany this book.) After the success of of its first two months,Mary Graham has decided to continue operatine Echo Systems. (The that occurred in these months are described in Chapter 2.) Before proceeding in December, Gra- e new accounts to the chart of accounts for the ledger: hamadds these ne No. 105 210 Account Accumulated Depreciation Office Equipment ... Accumulated Depreciation, Computer Equipment ............ Wages Payable...... Uneamed Computer Services Revenue..... Depreciation Expense, orice Equipment............. Depreciation Expense. Computer Equipment........... Insurance Expense Rent Expense Computer…

Answer 2

Question

Chapter 12, Problem 1DQ

To determine

Differentiate between independent projects and mutually exclusive projects.

Expert Solution & Answer

Explanation of Solution

Independent Projects and Mutually Exclusive Projects:

When acceptance or rejection of a project does not affect the cash flows of other projects, it is known as an independent project whereas when acceptance of a project disqualifies all other contesting projects, it is known as a mutually exclusive project.

Basis	Independent Projects	Mutually Exclusive Projects
Effect on other projects	The acceptance or rejection of independent projects does not affect the acceptance of rejection of other projects.	The acceptance of a mutually exclusive project disqualifies all the other competing projects.
Number of projects	More than one independent project may be accepted at a given time.	Only one mutually exclusive project can be accepted at a particular time.
Cash flow	The acceptance of an independent project does not affect the cash flows of the other independent projects.	The acceptance of a mutually exclusive project affects the cash flows of other projects.

Table (1)

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Answer 3

Question

Chapter 12, Problem 1DQ

To determine

Differentiate between independent projects and mutually exclusive projects.

Expert Solution & Answer

Explanation of Solution

Independent Projects and Mutually Exclusive Projects:

When acceptance or rejection of a project does not affect the cash flows of other projects, it is known as an independent project whereas when acceptance of a project disqualifies all other contesting projects, it is known as a mutually exclusive project.

Basis	Independent Projects	Mutually Exclusive Projects
Effect on other projects	The acceptance or rejection of independent projects does not affect the acceptance of rejection of other projects.	The acceptance of a mutually exclusive project disqualifies all the other competing projects.
Number of projects	More than one independent project may be accepted at a given time.	Only one mutually exclusive project can be accepted at a particular time.
Cash flow	The acceptance of an independent project does not affect the cash flows of the other independent projects.	The acceptance of a mutually exclusive project affects the cash flows of other projects.

Table (1)

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Answer 4

Question

Chapter 12, Problem 1DQ

To determine

Differentiate between independent projects and mutually exclusive projects.

Expert Solution & Answer

Explanation of Solution

Independent Projects and Mutually Exclusive Projects:

When acceptance or rejection of a project does not affect the cash flows of other projects, it is known as an independent project whereas when acceptance of a project disqualifies all other contesting projects, it is known as a mutually exclusive project.

Basis	Independent Projects	Mutually Exclusive Projects
Effect on other projects	The acceptance or rejection of independent projects does not affect the acceptance of rejection of other projects.	The acceptance of a mutually exclusive project disqualifies all the other competing projects.
Number of projects	More than one independent project may be accepted at a given time.	Only one mutually exclusive project can be accepted at a particular time.
Cash flow	The acceptance of an independent project does not affect the cash flows of the other independent projects.	The acceptance of a mutually exclusive project affects the cash flows of other projects.

Table (1)

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Answer 5

Chapter 12, Problem 1DQ

To determine

Differentiate between independent projects and mutually exclusive projects.

Expert Solution & Answer

Explanation of Solution

Independent Projects and Mutually Exclusive Projects:

When acceptance or rejection of a project does not affect the cash flows of other projects, it is known as an independent project whereas when acceptance of a project disqualifies all other contesting projects, it is known as a mutually exclusive project.

Basis	Independent Projects	Mutually Exclusive Projects
Effect on other projects	The acceptance or rejection of independent projects does not affect the acceptance of rejection of other projects.	The acceptance of a mutually exclusive project disqualifies all the other competing projects.
Number of projects	More than one independent project may be accepted at a given time.	Only one mutually exclusive project can be accepted at a particular time.
Cash flow	The acceptance of an independent project does not affect the cash flows of the other independent projects.	The acceptance of a mutually exclusive project affects the cash flows of other projects.

Table (1)

Answer 6

Chapter 12, Problem 1DQ

To determine

Differentiate between independent projects and mutually exclusive projects.

Expert Solution & Answer

Explanation of Solution

Independent Projects and Mutually Exclusive Projects:

When acceptance or rejection of a project does not affect the cash flows of other projects, it is known as an independent project whereas when acceptance of a project disqualifies all other contesting projects, it is known as a mutually exclusive project.

Basis	Independent Projects	Mutually Exclusive Projects
Effect on other projects	The acceptance or rejection of independent projects does not affect the acceptance of rejection of other projects.	The acceptance of a mutually exclusive project disqualifies all the other competing projects.
Number of projects	More than one independent project may be accepted at a given time.	Only one mutually exclusive project can be accepted at a particular time.
Cash flow	The acceptance of an independent project does not affect the cash flows of the other independent projects.	The acceptance of a mutually exclusive project affects the cash flows of other projects.

Table (1)

Answer 7

Chapter 12, Problem 1DQ

To determine

Differentiate between independent projects and mutually exclusive projects.

Answer 8

Expert Solution & Answer

Explanation of Solution

Independent Projects and Mutually Exclusive Projects:

When acceptance or rejection of a project does not affect the cash flows of other projects, it is known as an independent project whereas when acceptance of a project disqualifies all other contesting projects, it is known as a mutually exclusive project.

Basis	Independent Projects	Mutually Exclusive Projects
Effect on other projects	The acceptance or rejection of independent projects does not affect the acceptance of rejection of other projects.	The acceptance of a mutually exclusive project disqualifies all the other competing projects.
Number of projects	More than one independent project may be accepted at a given time.	Only one mutually exclusive project can be accepted at a particular time.
Cash flow	The acceptance of an independent project does not affect the cash flows of the other independent projects.	The acceptance of a mutually exclusive project affects the cash flows of other projects.