Problem $5-15$ Profitability Index versus NPV

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 available to the company. Assume the discount rate for all projects

is $10$ percent. Further, the company has only $$21$ million to invest in new projects this

year.

Cash Flows $($in millions$)$

a$.$ Calculate the profitability index for each investment. $($Do not round intermediate

calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$.$ Calculate the NPV for each investment. $($Do not round intermediate calculations

and enter your answer in dollars, not millions of dollars, rounded to $2$ decimal

places, e$.$g$.,1,234,567\mathrm{.}89)$