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. (5584) Criteria: Project_A Project_B Project_C Project_D Project_E NPV= $137,083 $31,290 $6,016 $7,647 IRR= 31.80% 48.34% 12.03% 11.30% 9.94% MIRR 18.52% 23.52% 10.62% 10.59% 9.97% Pi= 1.69 2.25 1.040 1.038 0.999 The discounting rate (r) is 10%. Project_F $12,521 26.79% 23.53% 2.25 Project G $9,214 37.87% 20.76% 1.92 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: 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 projects A, B, C, D, F and G should be taken If all projects are independent, under the Pl 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 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 Of projects A & B are mutually exclusive, projects Cand 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 all projects are mutually exclusive, under the NPV rule only project A should be taken If projects A. B and Care mutually exclusive (all others are independent), under the pl rule projects B, D, F and G should be undertaken If only projects E and F are mutually exclusive, under the NPV rule only project A should be taken Of projects A, B and Care mutually exclusive, projects Cand D are also mutually exclusive and all others are independent), under the NPV rule projects A, D, and Fshould be undertaken
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
