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All projects ( A to G ) are 7 - year projects. NPV = Net present value. IRR = internal rate of return. MIRR =
All projects A to G are year projects. NPV Net present value. IRR internal rate of return. MIRR modified internal rate of return. PI profitability index.
Criteria: ProjectA ProjectB ProjectC ProjectD ProjectE ProjectF ProjectG
NPV $ $ $ $$ $ $
IRR
MIRR
PI
The discounting rate r is
Which of the following statements are falseincorrect there are several, select all that apply Consider each statement on its own separate from the others listed:
Select correct answers
Question 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 NPV rule projects A D and F should be undertaken
If only projects E and F are mutually exclusive, under the NPV rule only project A should be taken
If all projects are independent, under the PI rule, all projects should be taken
If all projects are mutually exclusive, under the IRR rule only project B should be taken
If projects A & B are mutually exclusive, projects C and D 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 NPV rule, projects A B C D F and G should be taken
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