Question: You are presented with 6 projects. All projects are 7 year projects. NPV= net present value. IRR= internal rate of return. MIRR= modified internal rate
You are presented with 6 projects. All projects are 7 year projects. NPV= net present value. IRR= internal rate of return. MIRR= modified internal rate of return PI= Profitability index.
| Projects | a | b | c | d | f | g |
| NPV | (18,539) | 52,715 | 3,327 | 8,876 | 11,041 | 23,725 |
| IRR | 11.77 | 21.71 | 15.24 | 43.46 | 30.18 | 18.13 |
| MIRR | 12.97 | 17.16 | 14.36 | 24.83 | 20.12 | 15.84 |
| PI | .94 | 1.21 | 1.02 | 1.89 | 1.44 | 1.12 |
If projects B and C are mutually exclusive and projects D and G are also mutually exclusive, which project or projects should be selected using the NPV rule? The discounting rate is 14%.
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