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(Estimated time allowance: 6-7 minutes) All projects (A to G ) are 7-year projects. NPV = Net present value. IRR = internal rate of return.

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(Estimated time allowance: 6-7 minutes) 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 5 statements are true (there are several, select all that are correct). Consider each statement on its own separate from the others listed: Which of the following 5 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 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 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 projects A,B,C,D,F and G should be taken If all projects are mutually exclusive, under PI rule only project B should be taken discounting rate (r) is 1470

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