#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10
Independent versus mutually exclusive projects. Mutually exclusive projects are investments that compete in some way for a company's resources - a firm can select one or another but not both. Independent projects, on the other hand, do not compete for the firm's resources. A company can select one or the other or both, so long as minimum profitability thresholds are met.