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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

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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. Pl - 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 2.23 1.040 1.038 0.999 2.25 1.92 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 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 only projects E and F are mutually exclusive, under the NPV rule only project A should be taken 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 Pl rule only project F should be taker If projects A & B are mutually exclusive, projects C and D are also mutually exclusive and projects Fand G are also mutually exclusive (all others are independent), under the Pl rule projects A, D, and F should be undertaken

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