What is independent projects?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
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What is independent projects?

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Step 1

Introduction:

Capital budgeting is an investment criterion or decision making mechanism for determining which project a firm will choose to make an investment to help the business expand.

Step 2

Answer:

An independent project is one that stands apart from other ventures and would not stop a firm from participating in other projects. When a company accepts an independent project, the other proposals can still be approved or accepted.

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