Flash Memory Group 7 Writeup

As Pleasure Craft Inc. has publicly held debt; we determined the cost of debt to be the yield to maturity on the outstanding debt on the outboard motor project, so using a financial calculator we establish the YTM to be equal to 2.4827%. Because this is a Semi- annual compounding, rd = YTM * 2 = 4.9654%; for the cost of equity (Rf + β (Rm - Rf)): 12.8420%. The WACC is the discount rate of the projects WACC = rd * (1- Td) * D/V + (re * E/ V) = 4.9654% (1- 35%) * 30% + 12.8420% * 70% = 0.0996, so the WACC is determined to be 9.96% for outboard motors project. The NPV of this project is positive and equal to $35,630,973.63, the IRR for the outboard motors has calculated to be 8%. From these calculation we can know the project’s beta is lower than project front- end loader project and the risk is lower also; from the decision rule the NPV > 0 and IRR > R, so we choose the outboard motor project.

The semiconductor market in business communication is expected to have a compound average growth rate of almost 18% over the next five years. Our current market share within this segment is slightly more than 7%, and management wants to see the share of the market double by the end of the century. Figure 1 represents the projected growth of the semiconductor market in business communication and Mitel Semiconductor over the next five years.

What is the fastest type of storage, how fast does it work, and where is located?

Assuming the company does not invest in the new product line; prepare forecasted income statements and balance sheets at year-end 2010, 2011, and 2012. Based on these forecasts, estimate Flash's required external financing: in this case all required external financing takes the form of additional notes payable from its commercial bank, for the same period.

From pioneering in memory DRAM semicon to exiting the low-margin DRAM market – Intel was primarily a Memory semicon manufacturer before it entered microprocessors in 1980s. Its added value in the memory industry in 1970s was very high because of its advances in MOS process to produce DRAM. However, with increase in competition and the advancement of Japanese conglomerates in the memory industry Intel was forced to play a chasing game to improve performance and reduce costs. In the mid-1980s, Intel’s market share in the core memory business was <1%, however it was continuing to invest in this domain. They finally exited the DRAM market, which was more of a cash burner with low-margins.

Assuming the company does not invest in the new product line; prepare forecasted income statements and balance sheets at year-end 2010, 2011, and 2012. Based on these forecasts, estimate Flash's required external financing: in this case all required external financing takes the form of additional notes payable from its commercial bank, for the same period.

Before moving forward to compute the present value of these cash flows, a terminal value is required to forecast the long term value of the company after 5 years. . Following formula is used to calculate the terminal value.

As sales of Flash Memory Inc. (Flash) increases rapidly in the first few months of 2010, additional working capital is required to ensure smooth operations and maintain their current growth rate. However, Flash currently has almost reached its notes payable limit of 70% accounts receivables with its current commercial bank and thus, need to look for various alternative financing means to provide the required amount of funds it needs to finance its forecasted sales for year 2010 onwards. This report is written to provide an insight to Flash’s financial position for the following 3 years (2010 till 2012) through the use of pro-forma income statement and balance sheet. For Flash to be able to keep up

Hewlett Packard (HP) decided to produce 1.3-inch disk drives to become the market leader in a new market and increase HP’s revenue. Although the market for 1.3-inch disk drives was still unclear and still developing, HP decided to organize a special team to develop this new product. This group was multi-talented, with the best engineers from every department in the company. The group also had many priorities for the company. However, things didn’t develop as the Kittyhawk team expected. They failed to sell the new product to the customer they planned. Even though some new customers were interested in this

! As your financial consultants, we have conducted a comprehensive analysis of Flash Memory Inc. (FMI)’s current business situation, its new potential investment opportunity, and financing options. Our recommendations are as follows: 1. Pursue the suggested new product line. 2. Seek additional funding through equity financing and reinvestment of earnings. We proceed to present our findings, analyses, and rationales behind these recommendations.

Finally, in order to complete a more accurate comparison between the two projects, we utilized the EANPV as the deciding factor. Under current accepted financial practice, NPV is generally considered the most accurate method of predicting the performance of a potential project. The duration of the projects is different, one lasts four years and one lasts six years. To account for the variation in time frames for the projects and to further refine our selection we calculated the EANPV to compare performance on a yearly basis.

And especially large established firms face this dilemma; they have grown excellent at managing operational efficiencies and building customer loyalty. But will they be able to take wise decision when it comes to radical innovations and face the chaos associated with commercialization of breakthroughs. Subsequently, some companies actually made it possible, for example IBM, with a new generation of communication chips, describing an innovation aimed to increase switching speeds and reduce

In the component market, integrated circuit technology is threat of new entrants. The growth of integrated circuit technology makes existing component market shrink. EPD has taken aggressive moves to protect its market share from competitors and new entrants. Therefore, in existing market, EPD needs a cost reduction effort more and change their business model into low-margin high-volume business. It means that they should change their evaluation system; the plant should maintain 40% of gross margin. Additionally, they need to introduce new products into market to acquire new source of revenue. EPD has not built the clear strategies and shared them with employees.

The company, although respected, has come under fire for not using their research for product improvements or customer needs. BOLDFlash flaws have become apparent with the release of latest product, the A23-B flash drive. BOLDFlash technical communication practice is affecting product quality, delivery timeliness, efficiency, costs, and customer satisfaction. The company went through major reorganization of divisions, experiencing rapid sale growth, high productivity of products, and fast pace development of new products (Beer & Shelton, 2012).

For instance, there is an example that attempts to put RRAM into automotive manufacture, is Crossbar. Crossbar Inc., also known as the leader of the research in RRAM, shows competitive advantages in the memory market and its relative applications can put it to good use in a plenty of fields and areas. Compared to NAND flash memory, Crossbar RRAM technology reduces reading delay and increases the speed of read-in. Moreover, unlike NAND flash memory, it is unrestricted to establish a memory array in large modules as well as be independently erased in atomic order. This brand-new storage framework simplifies the memory controller, and it provides customer bet-ter experience of read-in, lower power dissipation, as well as longer life cycle of saving data.