- All Projects A To G Are 7 Year Projects Npv Net Present Value Irr Internal Rate Of Return Mirr Modified Inter 1 (59.06 KiB) Viewed 25 times
If projects A & B are mutually exclusive, projects C and Dare also mutually exclusive and projects F and G are also mutuallyexclusive (all others are independent), under the PI rule projectsB, C, and G should be undertaken
If projects A & B are mutually exclusive, projects C and Dare also mutually exclusive and projects F and G are also mutuallyexclusive (all others are independent), under the MIRR ruleprojects B, C, and F should be undertaken
If all projects are mutually exclusive, under the NPV rule onlyproject B should be taken
If all projects are independent, under the NPV rule, onlyproject E should be rejected
If projects A & B are mutually exclusive, projects C and Dare also mutually exclusive and projects F and G are also mutuallyexclusive (all others are independent), under the NPV rule projectsB, C, and G should be undertaken
If all projects are mutually exclusive, under the NPV ruleprojects A, B, C, D, F and G should be taken
If all projects are independent, under the PI rule, projects A,B, C, D, F, and G should be taken
If projects A & B are mutually exclusive, projects C and Dare also mutually exclusive and projects F and G are also mutuallyexclusive (all others are independent), under the IRR rule projectsB, C, and G should be undertaken
If all projects are independent, under the MIRR rule onlyproject E should be rejected
If all projects are independent, under the IRR rule onlyprojects A, B, C, D, F and G should be taken
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 NPV= IRR= MIRR= PI= The cost of capital (r) is 10%. Project A $14,154 28.66% 17.28% 1.57 Project_B Project_C Project_D_ Project_E $77,992 $29,515 $11,564 ($8,849) 20.33% 19.72% 45.52% 9.03% 14.35% 12.86% 22.76% 1.31 1.20 2.16 9.53% 0.97