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 cost of capital (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 6 options:

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 NPV rule, only project E should be rejected

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

If all projects are independent, under the PI 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 MIRR rule only project E should be rejected

If all projects are mutually exclusive, under the NPV 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 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 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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