The capital budgeting simulation presented a company by the name of Silicon Arts Inc. (SAI). SAI is a four-year-old company that manufactures digital imaging integrated circuits and has an agenda to increase their profit share and keep pace with today's technology. This paper will discuss the external and internal risks associated when making a decision to accept or reject a particular project. The decision made will be from a complete review of cash flow projections, opportunity costs, NPV, IRR, and the Profitability Index.
Proposals
Silicon Arts Inc. presented two capital investment proposals to their Financial Analyst to make a final decision. Dig-image proposed the details of setting up a plant in Sunnylane, CA, and the plant would produce the existing range of Silicon Arts Inc. circuits. The project life is estimated to be five years and will make a 30% contribution to Silicon Arts Inc. annual revenue. Silicon Arts Inc. is projected to generate revenues $54 million through......

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Title: Silicon Arts Inc
Approximate Word Count: 1217
Approximate Pages: 5 (250 words per double-spaced page)

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