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=	$137,083	$31,290	$6,016	$7,647	($584)	$12,521	$9,214
IRR=	31.80%	48.34%	12.03%	11.30%	9.94%	26.79%	37.87%
MIRR=	18.52%	23.52%	10.62%	10.59%	9.97%	23.53%	20.76%
PI=	1.69	2.25	1.040	1.038	0.999	2.25	1.92

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 16 options:

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 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 all projects are mutually exclusive, under the NPV rule projects A, B, C, D, F and G should be taken

If all projects are mutually exclusive, under the NPV rule only project A should be taken

If projects A, B and C are mutually exclusive (all others are independent), under the PI rule projects B, D, F and G should be undertaken

If all projects are independent, under the NPV rule, projects A, B, C, D, F, and G should be taken

If projects A, B and C are mutually exclusive, projects C and D are also mutually exclusive and (all others are independent), under the NPV rule projects A, D, and F should be undertaken

If only projects E and F are mutually exclusive, under the NPV rule only project A should be taken

If all projects are mutually exclusive, under the IRR rule only project B should be taken If all projects are independent, under the PI rule, all projects should be taken

All projects (A to G) are 7-year projects. NPV = Net present value. IRR = internal rate of return. MIRR = modified internal rate of return. Pl = profitability index. $6,0 Criteria: Project_A Project_B NPV= $137,083 $31,290 IRR= 31.80% 48.34% MIRR= 18.52% 23.52% PI= 1.69 2.25 The discounting rate (r) is 10%. Project_C Project_D $6,016 $7,647 12.03% 11.30% 10.62% 10.59% 1.040 1.038 Project E ($584) 9.94% 9.97% 0.999 Project_F $12,521 26.79% 23.53% 2.25 Project_G $9,214 37.87% 20.76% 1.92