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_AProject_BProject_CProject_DProject_EProject_FProject_GNPV=$137,083$31,290$6,016$7,647($584)$12,521$9,214IRR=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=1.692.251.0401.0381.002.251.92
The Weighted AverageCost of Capital 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 14 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 all projects are independent, under the NPV rule, projects A, B, C, D, F, and G should be taken
If all projects are independent, under the IRR 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 NPV rule projects A, D, 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 MIRR rule projects A, B, C, D, F and G should be taken
If all projects are mutually exclusive, under the IRR rule only projectBshould be taken
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 NPV rule only projectAshould 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
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