Question: 1. Briefly compare and contrast the NPV, PI, and IRR criteria. What are the advantages and disadvantages of using each of these methods?
2. What are mutually exclusive projects? Why might the existence of mutually exclusive projects cause problems in the implementation of the discounted cash flow capital-budgeting criteria?
3. What are common reasons for capital rationing? Is capital rationing rational?
2. What are mutually exclusive projects and what kind of difficulties may be associated with their ranking?