Investment Activities For Wealth Maximization

Investment Activities for wealthiness Maximization (Net Present Value Simulation) University of phoenix MBA 540 Investment Activities for Wealth Maximization Silicon Arts, Inc. (SAI) is a shaper of digital imaging coordinated Circuits for digital cameras, DVD players, computers, and opposite digital equipment. The Integrated Circuits were sell in North America, Europe, and s show uphwestern East Asia earning SAI an annual bargain of $180 million. However, 2001 the corporations revenue fell by 40%, in chemical reaction to the slowdown the conjunction bring down costs and froze groovy expenses, epoch the research and development parts true a alter chip used in liquid phones. In 2002, the specialise chips strengthen the financial position and development opportunity of SAI. SAI wants to enlarge market piece of land and keep up with technology, which can be done by either expanding their living Digital material body market share or by entering the radio receiver communication market, (University of Phoenix - Simulation, 2002). With a financial goal of increase market share and keeping grand with technology SAI is presented with devil 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 parley market.

Each proposal presents profit and risks. With two real possible proposals from Dig-Imaging and W-Comm this paper will care seriousy weigh the companys options through an informed decisions based on the outline force out present value (NPV) , internal rate of fork out (IRR), and prof! itability 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 terminate of the 2001, the R&D department developed a specialized chip, the IC 1032 is used in data embedded officious 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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