A situation in which taking one investment prevents the taking of another is called:

A) Net present value profiling.
B) Operational ambiguity.
C) Mutually exclusive investment decisions.
D) Issues of scale.
E) Multiple rates of return.

Mutually Exclusive Investment

This refers to a situation in corporate finance where choosing one investment option prevents the selection of another due to constraints such as capital or projects serving the same purpose.

Net Present Value Profiling

A process of determining the value of a series of cash flows by discounting them to the present value to evaluate the profitability of an investment.

Operational Ambiguity

Uncertainty in a firm's operational strategies and processes, which can affect its efficiency and ability to execute its business model effectively.