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= | $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 | 1.00 | 2.25 | 1.92 |
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:
Question 5 options:
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| If all projects are mutually exclusive, under the IRR rule only project B should be taken |
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| If all projects are mutually exclusive, under the NPV rule only project A should be taken |
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| 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 |
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| 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 |
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| If only projects E and F are mutually exclusive, under the NPV rule only project A should be taken |
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| 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 |
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| 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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| If all projects are independent, under the NPV rule, all projects should be taken |
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| If all projects are independent, under the NPV rule, projects A, B, C, D, F, and G should be taken |
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| If all projects are mutually exclusive, under the NPV rule projects A, B, C, D, F and G should be taken |


Question 5 (5 points) Listen 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 1.00 2.25 1.92 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 mutually exclusive, under the IRR rule only project B should be taken RUUD.V. 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 mutually exclusive, under the IRR rule only project B should be taken | If all projects are mutually exclusive, under the NPV rule only project A 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 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 B, C, and G should be undertaken If only ninct F and Fare mutually exclusive under the NPV rule only project A If only projects E and F are mutually exclusive, under the NPV rule only project A 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 Fand 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 independent, under the NPV rule, all projects should be taken If all projects are independent, 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 projects A, B, C, D, F and G should be taken
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