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 Criteria Project A Project B Project C Project D Project E Project F Project G NPV $14,154 $77,992 $29,515 $11,564 ($8,849) $26,514 $30,022 IRR 28 66 20 33 19 72 45 52 9 03 16 40 16 05 MIRR 17 28 14 35 12 86 22 76 9 53 11 97 12 45 PI 1 57 1 31 1 20 2 16 0 97 1 13 1 17 The discounting rate (r) is 10 Which of the following 10 statements are true (there are several, select all that are correct) Consider each statement on its own separate from the others listed Question 14 options 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 PI rule projects B, C, and G 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 B should be taken If all projects are independent, under the IRR rule only project B 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 NPV rule projects A, D, 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 IRR rule projects A, D, and F should be undertaken If only projects E and F are mutually exclusive, under the NPV rule only project E should be rejected 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 MIRR rule projects B, C, and F should be undertaken

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Question: All projects (A to G) are 7-year projects. NPV = Net present value. IRR = internal rate of return. MIRR = modified internal rate of

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.

Criteria	Project_A	Project_B	Project_C	Project_D	Project_E	Project_F	Project_G
NPV=	$14,154	$77,992	$29,515	$11,564	($8,849)	$26,514	$30,022
IRR=	28.66%	20.33%	19.72%	45.52%	9.03%	16.40%	16.05%
MIRR=	17.28%	14.35%	12.86%	22.76%	9.53%	11.97%	12.45%
PI=	1.57	1.31	1.20	2.16	0.97	1.13	1.17

The discounting rate (r) is 10%.

Which of the following 10 statements are true (there are several, select all that are correct). Consider each statement on its own separate from the others listed:

Question 14 options:

	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 PI rule projects B, C, and G 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 B should be taken
	If all projects are independent, under the IRR rule only project B 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 NPV rule projects A, D, 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 IRR rule projects A, D, and F should be undertaken
	If only projects E and F are mutually exclusive, under the NPV rule only project E should be rejected
	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 MIRR rule projects B, C, and F should be undertaken

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