Question: All projects ( A to G ) are 7 - year projects. NPV = Net present value. IRR = internal rate of return. MIRR =
All projects A to G are year projects. NPV Net present value. IRR internal rate
of return. MIRR modified internal rate of return. profitability index.
The discounting rate is
Which of the following statements are false incorrect there are several, select
all that apply Consider each statement on its own separate from the others listed:
If all projects are independent, under the NPV rule, projects and G
should be taken
If projects & are mutually exclusive, projects and are also mutually
exclusive and projects F and G are also mutually exclusive all others are
independent under the MIRR rule projects and should be undertaken
If projects & are mutually exclusive, projects and are also mutually
exclusive and projects F and G are also mutually exclusive all others are
independent under the NPV rule projects A D and F should be undertaken
If all projects are independent, under the NPV rule, all projects should be taken
If all projects are mutually exclusive, under the NPV rule only project A should
be taken
If all projects are mutually exclusive, under the NPV rule projects A B C D F
and G should be taken
If projects & are mutually exclusive, projects C and D are also mutually
exclusive and projects F and G are also mutually exclusive all others are
independent under the IRR rule projects B C and G should be undertaken
If only projects E and F are mutually exclusive, under the NPV rule only project A
should be taken
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