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 A Project B Project C Project D Project E Project F Project G NPV $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 2 178 0 822 0 945 1 028 1 394 1 294 0 871 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 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 MIRR rule all projects should be undertaken If all projects are mutually exclusive, under the NPV rule only project E 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, C, and E should be undertaken 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, and E should be undertaken 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 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 If all projects are mutually exclusive, under the IRR rule only project E should be taken If only projects B and C are mutually exclusive, under the NPV rule only project E should be taken If all projects are independent, under the NPV rule, projects A, D, E, and F should be taken

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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 A	Project B	Project C	Project D	Project E	Project F	Project G
NPV=	$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=	2.178	0.822	0.945	1.028	1.394	1.294	0.871

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 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 MIRR rule all projects should be undertaken
	If all projects are mutually exclusive, under the NPV rule only project E 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, C, and E should be undertaken
	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, and E should be undertaken
	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 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
	If all projects are mutually exclusive, under the IRR rule only project E should be taken
	If only projects B and C are mutually exclusive, under the NPV rule only project E should be taken
	If all projects are independent, under the NPV rule, projects A, D, E, and F should be taken

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