Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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= $137,083 $31,290 $6,016 $7,647 ($584) $12,521 $9,214 IRR= 31.80% 48.34% 12.03% 11.30% 9.94% 26.79% 37.87% MIRR= 18.52% 23.52% 10.62% 10.59% 9.97% 23.53% 20.76% PI= 1.69 2.25 1.040 1.038 0.999 2.25 1.92 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 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 mutually exclusive, under the IRR rule only project B 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 Pl rule, all projects should be taken If only projects E and Fare mutually exclusive, under the NPV rule only project A 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 mutually exclusive, under the Pl 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 Pl 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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started