Investment Activities For Wealth Maximization

Investment Activities for wealthiness Maximization (Net Present Value Simulation) University of keen of Arizona MBA 540 Investment Activities for Wealth Maximization Silicon Arts, Inc. (SAI) is a producer of digital imaging coordinated Circuits for digital cameras, DVD players, computers, and another(prenominal) digital equipment. The Integrated Circuits were sell in North America, Europe, and s surfacehwestern East Asia earning SAI an annual bargain of $180 million. However, 2001 the corporations revenue fell by 40%, in retort to the slowdown the gild bring down costs and froze capital expenses, epoch the research and development surgical incisions true a vary chip used in liquid phones. In 2002, the narrow down chips strengthen the financial position and development opportunity of SAI. SAI wants to accession market conduct and keep up with technology, which can be done by either expanding their living Digital figure of speech market share or by entering the radio receiver communication market, (University of Phoenix - Simulation, 2002). With a financial goal of change magnitude market share and keeping grand with technology SAI is presented with twain options in two proposals: (1) through Dig-image SAI whitethorn expand the companys existing Digital Imaging market share; or (2) through W-Comm enter the piano tuner talk market. Each proposal presents profit and risks. With two real viable proposals from Dig-Imaging and W-Comm this paper will care seriousy weigh the companys options through an informed decisions based on the outline exculpate present value (NPV), internal rate of fork out (IRR), and profitability index (PI). External Strategies Despites SAIs 40% decrease of revenue in 2001, the company go on to strategically support the research and development (R&D) department while reducing costs and freezing capital expenses. Towards the eradicate of the 2001, the R&D department developed a spec ialized chip, the IC 1032 is used in data em! bedded lively phones and with an impressive test pilot result, SAI entered...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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