Compute the npv and irr of each project and rank the


The Hansen Company is considering four mutually exclusive projects as follows:

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a) Compute the NPV and IRR of each project and rank the investments from best to worst under each method. What factors are responsible for the differences in rankings between the two approaches?

b) Compute the PVI for each project and rank the alternatives. What are the implicit assumptions of the PVI method with respect to scale and duration of projects? When is it appropriate to use the PVI method?

c) If the projects are mutually exclusive, which should be accepted if they are independent? Why?

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Financial Management: Compute the npv and irr of each project and rank the
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