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Estimated time allowance: 2-4 minutes. You are presented with 6 projects. All projects are 7-year projects. NPV = Net present value. IRR = internal rate
Estimated time allowance: 2-4 minutes. 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) IRR= 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 2.10 2.06 0.91 If projects A & C are mutually exclusive and projects D and Fare also mutually exclusive, which project or projects should be selected using the IRR rule
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