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 7-year projects. NPV = Net present value. IRR = internal rate
of return. MIRR = modified internal rate of return. ?PI= profitability index.
The discounting rate (r) is 10%.
Which of the following 10 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 A,B,C,D,F, and G
should be taken
If projects A&B 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 MIRR rule projects B,C, and F should be undertaken
If projects A&B 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 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 A&B 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
 All projects (A to G) are 7-year projects. NPV = Net

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