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All projects (A to G) are 7-year projects. NPV = Net present value. IRR = internal rate of return. MIRR = modified internal rate of

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 Project_A Project_B Project_C Project_D Project_E Project_F Project_G NPV= $14,154 $77,992 $29,515 $11,564 ($8,849) $26,514 $30,022 IRR= 28.66% 20.33% 19.72% 45.52% 9.03% 16.40% 16.05% MIRR= 17.28% 14.35% 12.86% 22.76% 9.53% 11.97% 12.45% PI= 1.57 1.31 1.20 2.16 0.97 1.13 1.17 The discounting rate (r) is 10%. Which of the following 10 statements are true (there are several, select all that are correct). Consider each statement on its own separate from the others listed: Question 14 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 all projects are mutually exclusive, under the NPV rule only project B 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 MIRR rule projects B, C, and F should be undertaken If all projects are independent, under the NPV rule, projects A, B, C, D, F, and G should be taken If all projects are independent, under the IRR rule only project B should be taken If only projects E and F are mutually exclusive, 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 IRR rule projects A, D, and F 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 NPV rule projects A, D, and F should be undertaken If all projects are independent, under the NPV rule, all projects should be taken If all projects are mutually exclusive, under the NPV rule projects A, B, C, D, F and G should be taken

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