Silicon Arts Inc. (SAI) is a four-year old company that manufactures digital imaging Intergrated Circuits (IC’s) that are used in digital cameras, DVD players, computers, and medical and scientific instrumentation. It has presence in North America (70% sales), Europe (20% sales), and South East Asia (10% sales). SAI’s annual sales turnover is $ 180 million. (UOP. 2005).

SAI’s goal is to increase market share while keeping pace with technology. Proposals are introduced in order to meet these goals. The two options are: expanding the existing Digital imaging market share or entering into the Wireless Communication market.
Measures such as Net Present Value (NPV), Internal Rate of Return (IRR), and Profitability Index (PI) must be used to compare two different capital investment proposals. It is important to analyze their cashflow statement prior to arriving at the final NPV, IRR and PI values.

The reason why NPV is so valuable to the company is because shareholders of......

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Title: Sai
Approximate Word Count: 702
Approximate Pages: 3 (250 words per double-spaced page)

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