Alternative Types of Projects (Answer all please)

Chris is an analyst for American Investor Holdings LLC (AIH). He is evaluating capital budgeting proposals for AIH's client, International Technologies. The first step is to classify the capital investment proposals. To assist Chris, read the description of the projects in the box below and indicate whether they should be classified as mutually exclusive, contingent, or independent projects. International Technologies will invest in an expanded ethics program for its board of directors and executive officers and purchase 45 new laptop computers for the customer service representatives in the Marketing Department. These projects should be classified as: Independent projects Mutually exclusive projects Contingent projects While taking a break, Chris confides to you that he sometimes gets confused about the differences between mutually exclusive, independent, and contingent projects. Help Chris understand these differences by reviewing the choices below and selecting the response that best explains the differences between an independent and a contingent project. A contingent project is one made necessary by a need to reduce costs, whereas an independent project is made necessary by the need to meet legal, health, and safety standards. An independent project is one whose acceptance precludes the acceptance of one or more other projects, whereas a contingent project is one whose acceptance (or rejection) has no effect on the acceptance or rejection of the other projects. A contingent project is one whose acceptance (or rejection) has no effect on the acceptance or rejection of the firm's other projects, whereas an independent project is one whose acceptance is dependent on the adoption of one or more other projects. An independent project is one whose acceptance (or rejection) has no effect on the acceptance or rejection of the firm's other projects, whereas a contingent project is one whose acceptance is dependent on the adoption of one or more other projects. The net annual cash flows for a capital expenditure proposal can be classified as either conventional (normal) or nonconventional (nonnormal). The following table lists the net annual cash flows for five proposed projects. Which project or projects exhibit a nonconventional cash flow stream? Project B only Projects A, B, D, and E Project A only Project D only