A number of alternative projects being considered for appraisal, in which no one project can be pursued in conjunction with any of the other projects. For example, a parcel of land may be used to build a factory, an office block, or a mixture of the two. Each alternative is mutually exclusive because the choice of one alternative automatically excludes the others. Mutually exclusive projects arise when there is a scarce resource, in this case land.
Subjects: Financial Institutions and Services — Accounting.