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Which statements are true? All projects (A to G) are 7-year projects. NPV = Net present value. IRR = internal rate of return. MIRR =
Which statements are true?
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% 37.873 MIRR 18.52% 23.52% 10.62% 10.59% 9.97% 23.53% 20.769 PI- 1.69 2.25 1.040 1.038 0.999 2.25 1.9: The discounting rate (r) is 10%. Which of the following 10 statements are false/incorrect (there are several, select all that apply). Consider each statement on its own separate from the others listed: If projects A & B are mutually exclusive, projects 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 mutually exclusive, under the Pl rule only projects Band 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 all projects are independent, under the Pl rule, all projects should be taken If all projects are mutually exclusive, under the IRR rule only project B should be taken If all projects are independent, under the NPV rule, projects A, B, C, D, F, and G should be taken If only projects E and Fare 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, Fand should be taken If projects A & B are mutually exclusive, projects 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 (all others are independent), under the IRR rule projects B, C, and G should be undertakenStep by Step Solution
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