Question: You are presented with 6 projects. All projects are 7-year projects. NPV = Net present value. IRR = internal rate of return. MIRR = modified

 You are presented with 6 projects. All projects are 7-year projects.

NPV = Net present value. IRR = internal rate of return. MIRR

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. Project A Project B Project C Project D Project F Project G NPV= $8,876 $11,041 $3,327 $23,725 ($18,539) $52,715 IRR= 43.46% 30.18% 15.24% 18.13% 11.77% 21.71% MIRR= 24.83%% 20.12% 14.36% 15.84% 12.97% 17.16% PI= 1.89 1.44 1.02 1.12 0.94 1.21 If all projects are mutually exclusive, which project or projects should be selected using the MIRR rule? The discounting rate (r) is 14%. O A, B, C, D and G OB and D OG O A and G O A, B, and D OA

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