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. Pl = profitability index. Criteria: Project A Project_B Project_C Project D Project_E Project_F NPV= $137,083 $31,290 $6,016 $7.647 ($584) $12,521 IRR 31.80% 48.34% 12.03% 11.30% 9.94% 26.799 MIRR= 18.52% 23.52% 10.62% 10.59% 9.97% 23.53% PIE 1.69 2.25 1.040 1.038 0.999 2.25 The discounting rate (n) 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. Project G $9.214 37.87% 20.76% 1.92 If projects A & B are mutually exclusive, projects 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 all projects are mutually exclusive, under the IRR rule only project B should be taken If projects A, B and Care mutually exclusive (all others are independent), under the PI rule projects B, D, F 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 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 If all projects are mutually exclusive, under the NPV rule only project A should be taken If projects A. B and Care mutually exclusive, projects and D are also mutually exclusive and (all others are independent), under the NPV rule projects A, D, and Fshould be undertaken If all projects are independentunder the Pl rule, all projects sho taken If only projects E and Fare mutually exclusive, under the NPV rule only project A should be taken
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