Distinguish between Complementary projects and mutually exclusive projects.

CPA-Financial-Management-Section-3 Revision kit

Complement projects
– Projects which complement each other so that the performance of one project in terms of cashflows will affect cashflows generated the other project

Mutually exclusive projects
– Projects which serve the same purpose so that if one is undertaken, the other is rejected
– The projects are substitute or alternative of each other and cannot be undertaken together

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