How to answer situational "If two MDs come to you with a project... etc" questions?

I got this question in one of my interviews a while back, and BS'd my way through but wondering if anyone knows for sure how to answer these typa questions. The questions usually are something like:

"You're working on a project for your MD and it's due tonight, but another MD comes to you asking you to complete a project that he also needs done by tonight, what do you do" Or some variation of this question

The way I answered it was "I'd be honest with the second MD and tell them that I have no room to fit that project into my schedule, but I'd talk with my coworkers/colleagues and see if there's anyone I can source it out to to ensure that the MD gets his project completed"

I figured honesty is the best policy in this type of question, instead of trying to fake it and assume that you can take on both projects (especially because interviewer clearly outlined that you'd only be able to get one done)

How would you guys answer this?

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