6.3 Types of Projects

  • Replacement refers to the acquisition of an asset to maintain existing production
  • Expansion refers either to expansion of existing product lines to new markets or to the introduction of new product lines
  • Independent projects are those projects where the acceptance of one does not affect the occurrence of the other
  • Mutually exclusive projects are those where either one of them can be accepted but not the other
  • Divisible projects can be divided into separate parts, with each capable of being undertaken on its own
  • Indivisible projects are ones that need to be taken as a whole
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