Risk Analysis on Investment Decision

Risk Analysis on Investment DecisionSilicon Arts Inc. (SAI) is a four- form-old troupe that manufactures digital imaging Integrated Circuits (ICs) that are use in digital cameras, DVD players, computers, and medical and scientific instrumentation. It has nominal head in North America (70% sales), Europe (20% sales) and South eastside Asia (10% sales). SAI?s annual sales turnover is $180 million. With the semiconductor flourish of 2000, SAI grew by 78%. However, the keep family experient a 40% reduction in revenue with an doggedness slowdown the next year. SAI reduced its costs and froze jacket prime expenses in response to the reduced revenue. SAI positioned itself to respond to an industry upturn by continuing their research and discipline efforts and developed the IC 1032 durability chip. With this strategic move and the industry gain in momentum, SAI has experient recent revenue growth. With this growth, SAI?s is able to pursue the company?s two-point agenda for the company: Increase market dish out and keep pace with technology. This dead body of work get out examine two potential neat investment objects, Dig-image and W-comm, nimble by a task index championed by the SAI chairman, Hal Eichner.

In the course of this examination, a comparison of web Present entertain (NPV), Internal Rate of Return (IRR) and favorableness Index (PI) surrounded by the two mutually exclusive capital investment proposals testament be performed. To begin a apprize overview of each proposal will be given. Dig-imageSAI is considering the construction of a unsanded Sunnyvale, CA plant to inc rease its production instal of the digital ! vision semiconductor. This comes on the heels of a recent worldwide study that has shown a market growth of 20% in year 1 and an annual growth of 7% from year 2 onward, with a cap in year 5 as new technologies are anticipated to replace the Digital Imaging semiconductor. The capital... If you take to get a full essay, place it on our website: BestEssayCheap.com

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