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.

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= $34,884 $2,834 $19,917 $164,307 $26,496 ($13,434) IRRE 19.27% 14.35% 24.03% 39.14% 52.80% 10.71% MIRR= 16.54% 14.21% 16.88% 32.18% 31.73% 11.88% PI= 1.12 1.01 1.13 2. 102.060.91 If all projects are independent, which project or projects should be selected using the NPV rule? The discounting rate (r) is 14%. OD O A, B, D and G O A, B, C, D, and F OF O A, B, and D OC and F

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