Calculate the profitability index for investment

Assignment Help Business Management
Reference no: EM132671252

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 9 percent. Further, the company has only $18 million to invest in new projects this year.

Cash Flows (in $ millions)YearCDMA G4 Wi-Fi 0-$5 -$13 -$18 1 7 10 15 2 4.5 24 31 3 2.5 18 18

a. Calculate the profitability index for each investment. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

b. Calculate the NPV for each investment. (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to 2 decimal places, e.g., 1,234,567.89)

Reference no: EM132671252

Questions Cloud

What is the amount of capital loss carryover : Gain on the sale of stock purchased 5 years ago and sold on March 14, year 14 15,000. What is the amount of capital loss carryover to year 15
Summarize the significant changes and impact on financial : Summarize the significant changes and impact on financial reporting with AASB 1031 Materiality (issued by the Australian Accounting Standards Boards - AASB)
Discuss the modern quantity theory : Discuss the modern quantity theory and the liquidity preference theory.
Where relevant and identify the effects separately : Jerry Farrow is employed by a Canadian, Mr. Farrow's Net Income For Tax Purposes and on his Taxable Income. Where relevant, identify these effects separately.
Calculate the profitability index for investment : Hanmi Group, a consumer electronics conglomerate, is reviewing its annual budget in wireless technology. It is considering investments in three different techno
What are the 3 major function of business finance : 1. What is Business Finance? 2. What is Finance? 3. Why do we study business finance?
What was Alice recognized gain or loss on her sale : On July 26, year 6, Alice sold the 300 shares of Zinco for $25,000. What was Alice's recognized gain or loss on her sale
Which journal entry to record payment of outstanding amount : On Sept. 2, Serpent Co. purchased inventory costing $3,000, terms were 1/10, n/30. The journal entry to record payment of outstanding amount on Sept. 8,which
How should Clyde treat the payment : The agreement made no explicit allocation of any of the $600,000 to Clyde's agreement not to compete against Red. How should Clyde treat the $600,000 payment

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd