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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

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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 return. PI= profitability index. 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: 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 IRR rule projects A, B, C, D, F and G should be taken If all projects are independent, thder the NPV rule, projects A, B, C, D, F, and G 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 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 IRR rule projects A, B, C, D, F and G should be taken If all projects are independent, under the NPV rule, projects A, B, C, D, F, and G 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 NPV rule projects A,D, and F should be undertaken If all projects are independent, under the PI rule, all projects 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 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 mutually exclusive, under the PI rule only projects B and F 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 PI rule projects A,D, and F should be undertaken If all projects are mutually exclusive, under the IRR rule only project B should be taken 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. 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: 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 IRR rule projects A, B, C, D, F and G should be taken If all projects are independent, thder the NPV rule, projects A, B, C, D, F, and G 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 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 IRR rule projects A, B, C, D, F and G should be taken If all projects are independent, under the NPV rule, projects A, B, C, D, F, and G 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 NPV rule projects A,D, and F should be undertaken If all projects are independent, under the PI rule, all projects 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 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 mutually exclusive, under the PI rule only projects B and F 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 PI rule projects A,D, and F should be undertaken If all projects are mutually exclusive, under the IRR rule only project B should be taken

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