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Hanmi Group, a consumer electronics conglomerate, is reviewing its annual budget in wireless technology. It is considering investments in three different technologies to develop wireless
| Hanmi Group, a consumer electronics conglomerate, is reviewing its annual budget in wireless technology. It is considering investments in three different technologies to develop wireless communication devices. Consider the following cash flows of the three independent projects for Hanmi. Assume the discount rate for Hanmi is 8 percent. Further, Hanmi Group has only $24 million to invest in new projects this year. |
| Cash Flows (in $ millions) |
| Year | CDMA | G4 | Wi-Fi | ||||||
| 0 | $ | 9 | $ | 15 | $ | 24 | |||
| 1 | 12 | 13 | 22 | ||||||
| 2 | 8.5 | 28 | 36 | ||||||
| 3 | 6.5 | 24 | 24 | ||||||
|
Calculate NPV for each investment. | |||||||||
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