1. Alternative Classification
Two Types:
Mutually Exclusive
Only one can be selected
Are compared against each other
Independent
More than one can be selected
Are compared only against do-nothing

2. Alternatives Example Solution:
For the alternatives shown below, which should be selected
if they are (a) Mutually exclusive, and (b) Independent
Project ID
Present Worth
A $30,000
B $12,500
C $4,000
D $2,000
Solution:
(a) Select project A
(b) Select projects A, B, & D