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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


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 for Hanmi. Assume the discount rate for Hanmi is 11 percent. Further, Hanmi Group has only $33 million to invest in new projects this year.


Cash Flows (in $ millions)
Year CDMA G4 Wi-Fi
0

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