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 manufacturer of digital imaging coordinated Circuits for digital cameras, DVD players, computers, and other digital equipment. The Integrated Circuits were sell in North America, Europe, and South East Asia earning SAI an annual bargain of $180 million. However, 2001 the corporations revenue fell by 40%, in response to the slowdown the company bring down costs and froze capital expenses, epoch the research and development departments true a specialized chip used in liquid phones. In 2002, the specialized chips strengthen the financial position and development opportunity of SAI. SAI wants to increase market share and keep up with technology, which can be done by either expanding their living Digital image market share or by entering the wireless communication market, (University of Phoenix - Simulation, 2002).
With a financial goal of increasing market share and keeping grand with technology SAI is presented with two 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 Communication 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 net 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 end of the 2001, the R&D department developed a specialized chip, the IC 1032 is used in data embedded mobile 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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