What is independent project and examples?

What is independent project and examples?

Independent Projects Independent (sometimes called stand-alone) projects are any set of projects in which choosing one has no impact on our decision to choose another project from that set. For example, McBurger Inc. Taking one project does not influence the other, so they are independent.

What is independent and mutually exclusive project?

Unlike independent projects, in which a decision to invest in one project has no bearing on the decision to make investment in another, investment decision in case of mutually exclusive projects is dependent on the relative merit of the projects.

What is independent project in capital budgeting?

An Independent Project is a project whose cash flows are not affected by the accept/reject decision for other projects. Thus, all Independent Projects which meet the Capital Budgeting criterion should be accepted. Mutually Exclusive Projects are a set of projects from which at most one will be accepted.

What is mutually exclusive projects?

Mutually exclusive projects are capital projects which compete directly with each other. For example, if a manager has to make a choice strictly between undertaking either project X or Y, but not both of them concurrently, then projects X and Y are said to be mutually exclusive.

What is the difference between independent projects and mutually exclusive projects?

What is the difference between independent and mutually exclusive projects? Independent projects: if the cash flows of one are unaffected by the acceptance of the other. Mutually exclusive projects: if the cash flows of one can be adversely impacted by the acceptance of the other.

What does independent mean in probability?

In probability, we say two events are independent if knowing one event occurred doesn’t change the probability of the other event. So the result of a coin flip and the day being Tuesday are independent events; knowing it was a Tuesday didn’t change the probability of getting “heads.”

What is the NPV decision rule for independent projects?

Independent projects: If NPV is greater than $0, accept the project. Mutually exclusive projects: If the NPV of one project is greater than the NPV of the other project, accept the project with the higher NPV. If both projects have a negative NPV, reject both projects.

Is mutually exclusive the same as independent?

The difference between mutually exclusive and independent events is: a mutually exclusive event can simply be defined as a situation when two events cannot occur at same time whereas independent event occurs when one event remains unaffected by the occurrence of the other event.

Can 2 events be mutually exclusive and independent?

Originally Answered: Can 2 events be mutually exclusive and independent? Not unless one of them has probability zero. Therefore P(A) = 0 or P(B) = 0. If at least one of the events has zero probability, then the two events can be mutually exclusive and indepenent simultaneously.

How do you prove that events are independent?

Events A and B are independent if the equation P(A∩B) = P(A) · P(B) holds true. You can use the equation to check if events are independent; multiply the probabilities of the two events together to see if they equal the probability of them both happening together.

Which is the best definition of an independent project?

Independent project. A project whose acceptance or rejection is independent of the acceptance or rejection of other projects.

Who are the sponsors of the independence project?

The Independence Project, a credit building program of The National Network to End Domestic Violence (NNEDV), was established in partnership with Verizon and with seed funding from Thirty-One Gifts, and is supported in part by generous funding from The Allstate Foundation.

How does the independence project help with credit?

Through the Independence Project, a survivor can apply for a credit building micro-loan of $100 and to repay this loan over the subsequent 10 months with no interest. To achieve the best possible credit score improvements through this program, the survivor must repay consistently until the loan matures.

How does the independence project help domestic violence survivors?

Through the Independence Project, advocates and local domestic violence programs across the nation can support survivors of domestic violence in improving their credit scores through micro-lending. The Independence Project is open! To apply please register at the following link: Independence Project Application Sign Up.