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.

Project AProject BProject CProject DProject EProject FProject GNPV=$4,711($711)($657)$334$9,842$7,360($3,224)IRR=44.51%5.47%8.06%12.98%22.56%17.19%5.47%MIRR=25.23%7.50%8.97%11.57%16.26%13.70%7.50%PI=2.1780.8220.9451.0281.3941.2940.871

The discounting rate (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 1 options:

If all projects are mutually exclusive, under the IRR rule only projectEshould be taken

If only projects B and C are mutually exclusive, under the NPV rule only projects A, D, E, and F 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 all projectsshould be undertaken

If all projects are mutually exclusive, under the NPV rule projects A, D, Eand F should be taken

If projects A & D are mutually exclusive, projects B and C are also mutually exclusive and projects E and F are also mutually exclusive (all others are independent), under the IRR rule projects A, D, E, and E should be undertaken

If all projects are independent, under the MIRR rule,projects B, C and G should be rejected

If all projects are independent, under the NPV rule, projects A, D, E, and F should be taken

If all projects are mutually exclusive, under the NPV rule only project Eshould be taken

If all projects are independent, under the PI rule, projects A, D, E, and F should be taken

If all projects are independent, under the IRR rule,projects B, C and G should be rejected

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