Risk Analysis

Risk Analysis on Investment Decision
Akisha McKelley
University of Phoenix


Silicon liberal arts Inc is in the business of digital imaging of Integrated Circuits utilize in DVD players, cameras, and computers, scientific and medical instruments. Sales ar in North America, Europe and South East Asia with the mass being in North America. When business first started SAI grew cursorily with the semiconductor industry boom. The industry then began to slow set ashore and revenues fell 40%. To make up for the drop in revenue SAI cut cost and stopped upper-case letter expenditures. They short developed the IC 1032 which is a chip used in mobile phones. (University of Phoenix, 2009)

The companys goals were then to increase their shares in the market and to keep up with changing technology. In seek to accomplish that goal two proposals were considered. One was to increase the digital Imaging market share and the other was to go into the radio receiver Communication business. In order to increase the shareholders wealth by the beat option the company has to take a account at NPV, IRR and PI. In order to make the best ratiocination the class is to go through a simulation where the pupil has to look at the statement of cash flows after fashioning different assumptions.



(University of Phoenix, 2009)

Taking a look at sales, footing and marketing cost predictions are necessary to help in coming to the best conclusion. Taking on the position of fiscal Analyst at SAI the student is responsible to make the best decision for the company. The first assignment is to look at the capital investment proposals. Using the information provided, the student should enter a yearly increase for years 2-3 and 4-5, for Dig Imaging. These increases relate to impairment and volume. The percentage is then used to calculate the adjustment in NPV and IRR. An increase in volume increases the NPV and IRR. The prediction is price bequeath go down. This decreases NPV and IRR. The cost of sales is also predicted to go up...If you compliments to get a full essay, order it on our website: Orderessay



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