
Net Present Value Net present value refers the variance between the present value of cash flows and the present value of cash outflows.
Mutually exclusive projects: Mutually exclusive projects are the project for which the acceptance of one project leads to rejection of another one and to make the difference between these projects is difficult, as both the projects compete for each other.
To Explain: To take the as a base to choose between the mutually exclusive projects is a bad idea.

Want to see the full answer?
Check out a sample textbook solution
Chapter 8 Solutions
Fundamentals of Corporate Finance (3rd Edition) (Pearson Series in Finance)
- Essentials Of InvestmentsFinanceISBN:9781260013924Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.Publisher:Mcgraw-hill Education,
- Foundations Of FinanceFinanceISBN:9780134897264Author:KEOWN, Arthur J., Martin, John D., PETTY, J. WilliamPublisher:Pearson,Fundamentals of Financial Management (MindTap Cou...FinanceISBN:9781337395250Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage LearningCorporate Finance (The Mcgraw-hill/Irwin Series i...FinanceISBN:9780077861759Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan ProfessorPublisher:McGraw-Hill Education





