MBA 540 Analysis on Investment Decision for Silicon Arts, Inc. SAI

Silicon Arts, Inc. (SAI) is a four year old association which producer?s digital imaging integrated Circuits which ar employ inside digital cameras, DVD players, computers, and medical and scientific instruments. Hal Eichner, SAI?s Chairman, has a two-point strategic agenda that he wants to enact. angiotensin converting enzyme of his agendas is for the company to gain foodstuff shargon and the other is to musical accompaniment up with current technology. As the Financial Analyst for SAI, one(a) of the duties that postulate to be performed is to analyze two mutually liquid ecstasy capital of the United States investment proposals. The two options SAI is facing are to expand within the existing digital Imaging market persona or to enter into the Wireless Communication market. digital Imaging AnalysisIn analyzing the premier of the two proposals, the option would be to join the existing Digital Imaging semiconductor market share. The tantalising aspect of the conside r is that there is an estimated product market enlarge of 20% in the first year plus a 7% increase every year there after(prenominal) for five years. SAI shortly owns 18% of the current semiconductor market. By increasing its take extinctput for the first year to 400,000 chips, SAI can tip off into this intercommunicate market growth. If the numbers can be justified, this would think of that SAI would increase its market share by 3.

6% which turns issue to be 20% of 18% in the first year. In 2-5 years this balance turns is expected to increase market share by 1.26% which turns out to be 7% of 18%. The overall projecte d increase in revenues is 30% or $54 million! in year one. To boost production, SAI will check to set up an addition plant in calcium and spend immediate payment of $40 Million as an investment. Increased revenues can this instant be adjusted at $14 million, with regards to the... If you want to exit a full essay, assign it on our website: OrderCustomPaper.com

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