A company is considering a proposal to install either a semi-automatic or highly automatic machine. If the firm installs a semi-automatic machine it excludes the acceptance of proposal to install highly automatic machine

CS Executive · Financial and Strategic Management · PYQS · June 2021
A company is considering a proposal to install either a semi-automatic or highly automatic machine. If the firm installs a semi-automatic machine it excludes the acceptance of proposal to install highly automatic machine. Which type of capital budgeting decision is this?
(A) Mutually exclusive decisions
(B) Independent decision
(C) Contingent decisions
(D) Rejectable decisions

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Capital Budgeting

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