Question: Question 1 options: If projects A & B are mutually exclusive, projects C and D are also mutually exclusive and projects F and G are

 Question 1 options: If projects A & B are mutually exclusive,

Question 1 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 PI 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 all projects are mutually exclusive, under the NPV rule only project B should be taken

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

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

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 NPV= IRR= MIRR= PI= The cost of capital (r) is 10%. Project A $14,154 28.66% 17.28% 1.57 Project_B Project_C Project_D_ Project_E $77,992 $29,515 $11,564 ($8,849) 20.33% 19.72% 45.52% 9.03% 14.35% 12.86% 22.76% 1.31 1.20 2.16 9.53% 0.97

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