Mutually Exclusive Investment Decision

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Mutually Exclusive Investment Decision

The decision to make an investment that prevents making a different investment. Some investment decisions are mutually exclusive by nature; for example taking a long position in a stock precludes taking a short position the same stock at the same time. Others are mutually exclusive circumstantially; for example, if one only has so much money to invest and buys stocks A, B, and C, there may not be enough left over to buy stock D. See also: Opportunity cost.
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Engelhardt does not distinguish between independent projects and mutually exclusive projects.
The wooden bridge and the steel bridge are mutually exclusive projects.
The marginal efficiency of capital: Rejoinder
This article identifies the problems in consistency of selecting mutually exclusive projects based on the NPV, while applying the BCR to project prioritization.
The NPV is recommended by Austroads (2005) and the Australian Transport Council (ATC 2006c) to be the most appropriate measure for selecting from mutually exclusive project options.
Proposed modifications to the cost-benefit analysis decision criteria for road project evaluation to improve decisionmaking
Payback cannot evaluate mutually exclusive projects because it doesn't consider the whole project period--would it be better to accept a project with a longer payback period that provides higher returns after that point than to accept a project with a shorter payback period but lower returns?
Table 2 considers two mutually exclusive projects with different cash flow profiles.
Performance Operations: Grahame Steven offers his guide to the development of four key investment appraisal methods--and their strengths and weaknesses
Whereas Cineaste may rationalize the controversy surrounding Lee's film by noting, "Malcolm X is not the sort of person Hollywood biopics normally celebrate" (Crowdus 4), Baldwin was not content to separate inclusion and transformation into mutually exclusive projects.
Reading a "closet screenplay": Hollywood, James Baldwin's Malcolms and the threat of historical irrelevance
When comparing among mutually exclusive projects, the highest NPV wins
Making the case for capital expenditures: new equipment will help you meet production requirements, but getting it means having to justify a capital expense. Here's how to make that process a success
Deconstruction and reconstruction are not, as Matthews and Young (and Smart) seem to think, mutually exclusive projects.
Rethinking Criminology: The Realist Debate
I am also accused of not distinguishing between independent projects and mutually exclusive projects.
The marginal efficiency of capital: reply to Fuller's rejoinder
IRR has also been criticised because it doesn't always correctly evaluate mutually exclusive projects or ensure the best allocation of resources when capital rationing occurs.
Management accounting-decision management: the internal rate of return may be a flawed investment appraisal method, writes Grahame Steven, but there is a small modification that can help

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