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independent versus mutually exclusive projects?

independent versus mutually exclusive projects?

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Independent project :

An Independent Project is a project whose cash flows are independent of cash flows of other projects. Cash flow of independent projects is not affected by the accept/reject decision for other projects. Therefore all independent projects that meets capital budgeting criteria must be accepted.

Mutually Exclusive Projects:

These are set of projects from which only one can be accepted. Therefore, when choosing between "Mutually Exclusive Projects" more than one project may satisfy the Capital Budgeting criterion, however, only one project shall be accepted providing better capital budgeting results as compared with others.

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