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Silicon Arts Npv

The Silicon Arts simulation provided an overview of a company trying to make choices between two cash flows for future business investments. The simulation analyzed cash flows using the ratios of Net Present Value [NPV], Internal Rate of Return [IRR], and Profitability Index [PI]. However, there were also other factors that needed further analysis such as expected risks by the type of volume expected for production and a new plant launch as well. The scenario was a good overview of the concepts and showed the types of decisions Silicon Arts needed to make to turn around their business from the 40% slowdown in the electronics industry.
The whole analysis was centered on an ROI calculation for each option. "Performing an ROI analysis allows your organization to evaluate strengths and weaknesses withinÂ…, so that it will remain competitive in the market" (AIIM E-DOC, CH 4, PARA 3). The scenarios took into account the NPV, and although not specified, I made an assumption they......


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Approximate Word Count: 511
Approximate Pages: 3 (250 words per double-spaced page)

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