Please help solve the following questions:

• Describe situations in which profitability index cannot be used to make an investment decision
• Discuss the reasons IRR can give a flawed decision
• If the IRR rule and the NPV rule lead to different decisions for a stand-alone project, which should you follow? Why?
• For mutually exclusive projects, explain why picking one project over another because it has a larger IRR can lead to mistakes.
• Explain why ranking projects according to their NPV might not be optimal when you evaluate projects with different resource requirements.
• How can the profitability index be used to identify attractive projects when there are resource constraints?