Exercise: Assume the following investment projects: 1. A firm may own a block of land, which is large enough to establish a shoe manufacturing business or a steel fabrication plant. 2. The introduction of a new product line (soap) and at the same time the replacement of a machine, which is currently producing a different product (plastic bottles). 3. The decision to start a pharmacy if a doctors' surgery is established in an adjacent building. 4. The installation of a new air conditioning system and the commissioning of a new advertising campaign for a product currently sold by the firm. Classify each project into one of the given categories: independent projects, mutually exclusive projects or contingent projects.

Exercise: Assume the following investment projects: 1. A firm may own a block of land, which is large enough to establish a shoe manufacturing business or a steel fabrication plant. 2. The introduction of a new product line (soap) and at the same time the replacement of a machine, which is currently producing a different product (plastic bottles). 3. The decision to start a pharmacy if a doctors' surgery is established in an adjacent building. 4. The installation of a new air conditioning system and the commissioning of a new advertising campaign for a product currently sold by the firm. Classify each project into one of the given categories: independent projects, mutually exclusive projects or contingent projects. Exercise: Assume the following investment projects: 1. A firm may own a block of land, which is large enough to establish a shoe manufacturing business or a steel fabrication plant. 2. The introduction of a new product line (soap) and at the same time the replacement of a machine, which is currently producing a different product (plastic bottles). 3. The decision to start a pharmacy if a doctors' surgery is established in an adjacent building. 4. The installation of a new air conditioning system and the commissioning of a new advertising campaign for a product currently sold by the firm. Classify each project into one of the given categories: independent projects, mutually exclusive projects or contingent projects