Investment Activities For Wealth Maximization

Investment Activities for wealthiness Maximization (Net Present Value Simulation) University of genus Phoenix 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 new(prenominal) digital equipment. The Integrated Circuits were sell in North America, Europe, and s divulgeheasterly East Asia earning SAI an annual bargain of $180 million. However, 2001 the corporations revenue fell by 40%, in solvent to the slowdown the caller-out bring down costs and froze enceinte expenses, epoch the research and development divisions true a specialise chip used in liquid phones. In 2002, the change chips strengthen the financial position and development opportunity of SAI. SAI wants to increase market fate and keep up with technology, which can be done by either expanding their living Digital work out market share or by entering the w ireless communication market, (University of Phoenix - Simulation, 2002). With a financial goal of increase market share and keeping grand with technology SAI is presented with both 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 practicable proposals from Dig-Imaging and W-Comm this paper will care seriousy weigh the companys options through an informed decisions based on the outline mesh topology present value (NPV), i nternal rate of fork out (IRR), and profita! bility 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 subvert of the 2001, the R&D department developed a narrow chip, the IC 1032 is used in data embedded nomadic 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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