New Heritage Doll Company Case Solution

8/20/2019 New Heritage Doll Company Case Solution

1/42

New Heritage Doll Company

Summary

Particulars MMDC DYOD

NPV 7,222 7,063 MMDC

IRR 24!" #7$" MMDCPI 32% #32 MMDC

Pay&a'( perio) !%7 $$$ DYOD

**DC D+D

PV o- e.pli'it -ore'a/ting perio) 741 3,3731

PV o- terminal alue 7,2$6 #0,436

otal 7,222 7,063


2/42

MMDC

Moderate risk

a. rate 40" RD an) *are(ting 5.pen

Di/'ount rate 8.40%

rowt rate a-ter #0 year/ 30"

Exhibit 1

+ear 20#0 20## 20#2Reenue growt rate 5.i&it # %240"

Reenue 5.i&it # 4,%00 6,!%!

5.pen/e/

5.i&it # %7% %7%

Varia&le pro)u'tion e.pen/e/ 5.i&it # 2,03% 3,404

Depre'iation 5.i&it # #%2 #%2

otal pro)u'tion e.pen/e/ Summation 0 2,762 4,#3#

8p-ront RD 62%

8p-ront mar(eting 62%

S95 5.i&it # #,#%% #,73%

otal operating e.pen/e/ Summation #,2%0 3,$#7 %,!66

5:I Di;eren'e #,2%01 %!3 $$2

P9 5.i&it # %$2 %$2

Inentory turnoer > 5.i&it # 77 !3

Day/ paya&le/ out/tan)ing 5.i&it # 30! 30$

Current a//et/

Ca/ #3% 206

9''ount/ re'eia&le/ )ay/ 723 #,#0#

Inentory 3%$ 4$!

otal 'urrent a//et/ #,2#6 #,!0%

?i.e) pro)u'tion e.pen/e/e.'lu)ing )epre'iation

Initial e.pen)ituree.pn/e) p%, para#, line #1

Assumptions aboutworking capital

*inimum 'a/ &alan'e a/ "/ale/


3/42

9''ount/ paya&le/ 33# 4$7

Net wor(ing 'apital !!6 #,30!

In'rea/e in N@C = !!6 422

?C? 2,2201 #,3361 #73

erminal alue

Total FCF (!0" (1!##$" 1#Cumulatie total ?C? 2,2201 3,%%61 3,3!31

PV? #000 0$23 0!%#

&' (!0" (1!#" 14

NPV 7,2%4

IRR 24!7" Initial Co/t

PI 327 C?C

Pay&a'( perio) !60 7.5 Di;eren'e

2,2201 #,3361 #73

2,2201 #,2321 #47

erminal alue

PV o- terminal alue

otal PV

5.pli'it -ore'a/t perio) 'a/Aow/

PV o- e.pli'ir -ore'a/tingperio)


4/42

iture/ to &e e.'lu)e)

20#3 20#4 20#% 20#6 20#7 20#! 20#$ 20202260" !00" !00" !00" !00" !00" !00" !00"

!,40! $,0!# $,!07 #0,%$2 ##,43$ #2,3%4 #3,342 #4,4#0

%!7 %$! 6#0 622 63% 64! 660 674

4,2$# 4,66$ %,07! %,%2# 6,000 6,%#$ 7,07$ 7,6!%

#%2 #%2 #64 #7! #$2 207 224 242

%,030 %,4#$ %,!%2 6,32# 6,!27 7,374 7,$63 !,60#

2,#02 2,270 2,4%2 2,64! 2,!60 3,0!$ 3,336 3,603

7,#32 7,6!$ !,304 !,$6$ $,6!7 #0,463 ##,2$$ #2,204

#,276 #,3$2 #,%03 #,623 #,7%2 #,!$# 2,043 2,206

766 !3% $02 $74 #,0%# #,#3% #,226 #,323

#%2 334 36# 3!$ 42# 4%4 4$# %30

30" 30" 30" 30" 30" 30" 30" 30"

%$2 %$2 %$2 %$2 %$2 %$2 %$2 %$2

#27 #27 #27 #27 #27 #27 #27 #27

3#0 3#0 3#0 3#0 3#0 3#0 3#0 3#0

2%2 272 2$4 3#! 343 37# 400 432

#,3%0 #,4%! #,%7% #,70# #,!37 #,$!4 2,#42 2,3#4

3$6 427 46# 4$! %3! %!# 627 677

#,$$! 2,#%7 2,330 2,%#6 2,7#7 2,$3% 3,#70 3,423


5/42

606 6%3 70% 762 !23 !!$ $60 #,037

#,3$3 #,%04 #,624 #,7%4 #,!$% 2,046 2,2#0 2,3!7

!% ##2 #20 #30 #40 #%2 #64 #77

6!# %4# %!4 633 6!2 736 7$% !%$

#6,377

$81 41 84 $## $8 #$ ) 1!#$2,7021 2,#6#1 #,%761 $441 2621 474 #,26$ #!,%0%

07!% 0724 066! 06#6 0%6$ 0%2% 04!4 0446

# #) #)1 #)0 #88 #8$ #8 !$)4

3,%%6

4,!2%

#,26$

6!# %4# %!4 633 6!2 736 7$% !%$

%3% 3$2 3$# 3$0 3!! 3!6 3!% 3!3

#6,377

7,3##


6/42

#470 !00


7/42

otal

%61

7,3##

7,2%4


8/42

D+D

*igh risk

a. rate 04 RD an) *are(ting 5.pen)iture/ to &e

Di/'ount rate ).00%


Exhibit +ear 20#0 20## 20#2 20#3

Reenue growt rate " #3$30"

Reenue = BBB 6,000 #4,3%!

5.pen/e/

= BBB #,6%0 #,6!3

= 4# = BBB

= BBB 2,2%0 7,6%#

Depre'iation = BBB 3#0 BBB

otal pro)u'tion e.pen/e/ = 43% 4,2#0 $,644

8p-ront RD !4#

8p-ront mar(eting 360

S95 = BBB #,240 2,$22

otal operating e.pen/e/ #,20# 43% %,4%0 #2,%66

5:I #,20#1 43%1 %%0 #,7$2

P9 72#1 26#1 330 #,07%

Cape. 4,6#0 = 3#0 BBB

30" 30"

Day/ /ale/ out/tan)ing %$2 BBBInentory turnoer #22 #23

Day/ paya&le/ out/tan)ing 337 33!

Current a//et/

Ca/ = #!0 43#

9''ount/ re'eia&le/ = $73 2,32$


9))itional )eelopmente.pen/e

Varia&le pro)u'tione.pen/e/

9//umption/ a&out wor(ing'apital

*inimum 'a/ &alan'e a/" /ale/


9/42

Inentory 34% 7!4

otal 'urrent a//et/ = #,4$! 3,%44

9''ount/ paya&le/ = %03 #,#64

Net wor(ing 'apital = #,000 $$% 2,3!0

In'rea/e in N@C = #,000 %1 #,3!%

?C? %,33#1 #,26#1 33% 3#01 erminal alue

otal ?C? %,33#1 #,26#1 33% 3#01

Cumulatie total ?C? %,33#1 6,%$21 6,2%71 6,%661

PV? #000 0$#7 0!42 0772

PV %,33#1 #,#%71 2!2 23$1

NPV 7,063

IRR #7$0" Initial Co/t !,#0#

PI #32 C?C 32,%%0

Pay&a'( perio) $$$ Di;eren'e 24,4%0

%,33#1 #,26#1 33% 3#01

%,33#1 #,#%71 2!2 23$1

erminal alue

PV o- terminal alue

otal PV




10/42

e.'lu)e)

20#4 20#% 20#6 20#7 20#! 20#$

40!0" 600" 600" 600" 600" 600"

20,2#6 2#,42$ 22,7#% 24,07! 2%,%22 27,0%4

#,7#7 #,7%# #,7!6 #,!22 #,!%! #,!$%

= BBB = = = =

##,427 #2,#!2 #2,$!3 #3,!33 #4,736 #%,6$4

3#0 436 462 4$0 %20 %%#

#3,4%4 #4,36$ #%,23# #6,#4% #7,##4 #!,#40

4,044 4,2!7 4,%44 4,!#7 %,#06 %,4#2

#7,4$! #!,6%6 #$,77% 20,$62 22,220 23,%%2

2,7#! 2,773 2,$40 3,##6 3,302 3,%02

#,63# #,664 #,764 #,!6$ #,$!# 2,#0#

2,#$2 !26 !7% $2! $!3 #,043

30" 30" 30" 30" 30" 30"

%$2 BBB %$2 %$2 %$2 %$2#26 #27 #27 #27 #27 #27

33$ BBB 33$ 33$ 33$ 33$

606 643 6!# 722 766 !#2

3,27$ 3,476 3,6!4 3,$0% 4,#40 4,3!!


11/42

#,06! #,#3# #,#$$ #,27# #,34! #,42!

4,$%3 %,2%0 %,%6% %,!$$ 6,2%3 6,62!

#,62% #,733 #,!37 #,$47 2,064 2,#!7

3,32! 3,%#7 3,72! 3,$%2 4,#!$ 4,440

$4! #!$ 2## 224 237 2%#

#,#$$1 #,0!% #,#40 #,20! #,2!# #,3%!

#,#$$1 #,0!% #,#40 #,20! #,2!# #,3%!

7,7661 6,6!#1 %,%4#1 4,3331 3,0%21 #,6$%1

070! 06%0 0%$6 0%47 0%02 0460

!%01 70% 6!0 66# 643 62%

#,#$$1 #,0!% #,#40 #,20! #,2!# #,3%!

!%01 70% 6!0 66# 643 62%


12/42

2020

600"

2!,677

#,$33

=

#6,7#2

%!4

#$,22$

%,737

24,$66 46#0

#20# 3,7##

2,227

#,#0%

30"

%$2#27

33$

!60

4,6%#


13/42

#,%#4

7,026

2,3#$

4,707

266

#,43$24,70%

26,#44

24,4%0

0422

##,044

otal

#,43$

60! 3,3731

24,70%

#0,436 #0,436

7,063


14/42

MMDC

Moderate risk

a. rate 40" RD an) *are(ting 5.pen

Di/'ount rate 8.40%


Exhibit 1

+ear 20#0 20## 20#2Reenue growt rate 5.i&it # %240"

Reenue 5.i&it # 4,%00 6,!%!

5.pen/e/

5.i&it # %7% %7%

Varia&le pro)u'tion e.pen/e/ 5.i&it # 2,03% 3,404

Depre'iation 5.i&it # #%2 #%2

otal pro)u'tion e.pen/e/ Summation 0 2,762 4,#3#

8p-ront RD 62%

8p-ront mar(eting 62%

S95 5.i&it # #,#%% #,73%

otal operating e.pen/e/ Summation #,2%0 3,$#7 %,!66

5:I Di;eren'e #,2%01 %!3 $$2

P9 5.i&it # %$2 %$2

Inentory turnoer > 5.i&it # 77 !3

Day/ paya&le/ out/tan)ing 5.i&it # 30! 30$

Current a//et/

Ca/ #3% 206

9''ount/ re'eia&le/ )ay/ 730 #,##2

Inentory 3%$ 4$!

otal 'urrent a//et/ #,224 #,!#6


Initial e.pen)ituree.pn/e) p%, para#, line #1

Assumptions aboutworking capital

*inimum 'a/ &alan'e a/ "/ale/


15/42

9''ount/ paya&le/ 33# 4$7

Net wor(ing 'apital !$3 #,3#$

In'rea/e in N@C = !$3 426

?C? 2,2201 #,3431 #6$

erminal alue

Total FCF (!0" (1!#4#" 1$)Cumulatie total ?C? 2,2201 3,%631 3,3$41

PV? #000 0$23 0!%#

&' (!0" (1!#)" 144

NPV 7,222

IRR 247$" Initial Co/t

PI 32% C?C

Pay&a'( perio) !%7 7.5 Di;eren'e

2,2201 #,3431 #6$

2,2201 #,23$1 #44

erminal alue

PV o- terminal alue

otal PV




16/42

iture/ to &e e.'lu)e)

20#3 20#4 20#% 20#6 20#7 20#! 20#$ 20202260" !00" !00" !00" !00" !00" !00" !00"

!,40! $,0!# $,!07 #0,%$2 ##,43$ #2,3%4 #3,342 #4,4#0

%!7 %$! 6#0 622 63% 64! 660 674

4,2$# 4,66$ %,07! %,%2# 6,000 6,%#$ 7,07$ 7,6!%

#%2 #%2 #64 #7! #$2 207 224 242

%,030 %,4#$ %,!%2 6,32# 6,!27 7,374 7,$63 !,60#

2,#02 2,270 2,4%2 2,64! 2,!60 3,0!$ 3,336 3,603

7,#32 7,6!$ !,304 !,$6$ $,6!7 #0,463 ##,2$$ #2,204

#,276 #,3$2 #,%03 #,623 #,7%2 #,!$# 2,043 2,206

766 !3% $02 $74 #,0%# #,#3% #,226 #,323

#%2 334 36# 3!$ 42# 4%4 4$# %30

30" 30" 30" 30" 30" 30" 30" 30"

%$2 %$2 %$2 %$2 %$2 %$2 %$2 %$2

#27 #27 #27 #27 #27 #27 #27 #27

3#0 3#0 3#0 3#0 3#0 3#0 3#0 3#0

2%2 272 2$4 3#! 343 37# 400 432

#,364 #,473 #,%$# #,7#! #,!%% 2,004 2,#64 2,337

3$6 427 46# 4$! %3! %!# 627 677

2,0#2 2,#72 2,346 2,%33 2,736 2,$%% 3,#$# 3,447


17/42

606 6%3 70% 762 !23 !!$ $60 #,037

#,406 #,%#$ #,640 #,772 #,$#3 2,066 2,232 2,4#0

!7 ##3 #2# #3# #42 #%3 #6% #7$

67! %40 %!3 63# 6!0 73% 7$4 !%7

#6,344

$8 40 8# $#1 $80 # )4 1!012,7#61 2,#7%1 #,%$21 $6#1 2!01 4%4 #,24! #!,44$

07!% 0724 066! 06#6 0%6$ 0%2% 04!4 0446

## #)1 #)0 #8) #8 #8 #84 !$8

3,%63

4,!##

#,24!

67! %40 %!3 63# 6!0 73% 7$4 !%7

%33 3$# 3$0 3!$ 3!7 3!% 3!4 3!3

#6,344

7,2$6


18/42

#470 !00


19/42

otal

741

7,2$6

7,222


20/42

D+D

*igh risk

a. rate 04 RD an) *are(ting 5.pen)iture/ to &e

Di/'ount rate ).00%


Exhibit +ear 20#0 20## 20#2 20#3

Reenue growt rate " #3$30"

Reenue = BBB 6,000 #4,3%!

5.pen/e/

= BBB #,6%0 #,6!3

= 4# = BBB

= BBB 2,2%0 7,6%#

Depre'iation = BBB 3#0 BBB

otal pro)u'tion e.pen/e/ = 43% 4,2#0 $,644

8p-ront RD !4#

8p-ront mar(eting 360

S95 = BBB #,240 2,$22

otal operating e.pen/e/ #,20# 43% %,4%0 #2,%66

5:I #,20#1 43%1 %%0 #,7$2

P9 72#1 26#1 330 #,07%

Cape. 4,6#0 = 3#0 BBB

30" 30"

Day/ /ale/ out/tan)ing %$2 BBBInentory turnoer #22 #23

Day/ paya&le/ out/tan)ing 337 33!

Current a//et/

Ca/ = #!0 43#

9''ount/ re'eia&le/ = $73 2,32$


9))itional )eelopmente.pen/e

Varia&le pro)u'tione.pen/e/

9//umption/ a&out wor(ing'apital

*inimum 'a/ &alan'e a/" /ale/


21/42

Inentory 34% 7!4

otal 'urrent a//et/ = #,4$! 3,%44

9''ount/ paya&le/ = %03 #,#64

Net wor(ing 'apital = #,000 $$% 2,3!0

In'rea/e in N@C = #,000 %1 #,3!%

?C? %,33#1 #,26#1 33% 3#01 erminal alue

otal ?C? %,33#1 #,26#1 33% 3#01

Cumulatie total ?C? %,33#1 6,%$21 6,2%71 6,%661

PV? #000 0$#7 0!42 0772

PV %,33#1 #,#%71 2!2 23$1

NPV 7,063

IRR #7$0" Initial Co/t !,#0#

PI #32 C?C 32,%%0

Pay&a'( perio) $$$ Di;eren'e 24,4%0

%,33#1 #,26#1 33% 3#01

%,33#1 #,#%71 2!2 23$1

erminal alue

PV o- terminal alue

otal PV




22/42

e.'lu)e)

20#4 20#% 20#6 20#7 20#! 20#$

40!0" 600" 600" 600" 600" 600"

20,2#6 2#,42$ 22,7#% 24,07! 2%,%22 27,0%4

#,7#7 #,7%# #,7!6 #,!22 #,!%! #,!$%

= BBB = = = =

##,427 #2,#!2 #2,$!3 #3,!33 #4,736 #%,6$4

3#0 436 462 4$0 %20 %%#

#3,4%4 #4,36$ #%,23# #6,#4% #7,##4 #!,#40

4,044 4,2!7 4,%44 4,!#7 %,#06 %,4#2

#7,4$! #!,6%6 #$,77% 20,$62 22,220 23,%%2

2,7#! 2,773 2,$40 3,##6 3,302 3,%02

#,63# #,664 #,764 #,!6$ #,$!# 2,#0#

2,#$2 !26 !7% $2! $!3 #,043

30" 30" 30" 30" 30" 30"

%$2 BBB %$2 %$2 %$2 %$2#26 #27 #27 #27 #27 #27

33$ BBB 33$ 33$ 33$ 33$

606 643 6!# 722 766 !#2

3,27$ 3,476 3,6!4 3,$0% 4,#40 4,3!!


23/42

#,06! #,#3# #,#$$ #,27# #,34! #,42!

4,$%3 %,2%0 %,%6% %,!$$ 6,2%3 6,62!

#,62% #,733 #,!37 #,$47 2,064 2,#!7

3,32! 3,%#7 3,72! 3,$%2 4,#!$ 4,440

$4! #!$ 2## 224 237 2%#

#,#$$1 #,0!% #,#40 #,20! #,2!# #,3%!

#,#$$1 #,0!% #,#40 #,20! #,2!# #,3%!

7,7661 6,6!#1 %,%4#1 4,3331 3,0%21 #,6$%1

070! 06%0 0%$6 0%47 0%02 0460

!%01 70% 6!0 66# 643 62%

#,#$$1 #,0!% #,#40 #,20! #,2!# #,3%!

!%01 70% 6!0 66# 643 62%


24/42

2020

600"

2!,677

#,$33

=

#6,7#2

%!4

#$,22$

%,737

24,$66 46#0

#20# 3,7##

2,227

#,#0%

30"

%$2#27

33$

!60

4,6%#


25/42

#,%#4

7,026

2,3#$

4,707

266

#,43$24,70%

26,#44

24,4%0

0422

##,044

otal

#,43$

60! 3,3731

24,70%

#0,436 #0,436

7,063


26/42

**DC

Growth Rate after 10 Years 2% % !% 5% "%

#P$ till &ears =4%6 =4%6 =4%6 =4%6 =4%6

#P$ 10 Years 647$ 767! $423 #2#$% #7276

'otal #P$ 6022 7222 !$67 ##73$ #6!20

Growth Rate =#7" 20" 24" 3#" 43"

(ales Growth Rate )10% )5% 0% 5% 10%

#P$ =3!66 #67! 7222 #2766 #!3#0

Cha*+e =#%4" =77" 0" 77" #%4"

,i-ed Cost )10% )5% 0% 5% 10%

#P$ 7!0! 7%#% 7222 6$2$ 6636

Cha*+e !" 4" 0" =4" =!"

$ariale Cost )10% )5% 0% 5% 10%#P$ #3063 #0#43 7222 430# #3!#

Cha*+e !#" 40" 0" =40" =!#"

!0!!23%

#et /orki*+ Caital )10% )5% 0% 5% 10%

#P$ 7%%6 73!$ 7222 70%% 6!!!

Cha*+e %" 2" 0" =2" =%"

CP3 )10% )5% 0% 5% 10%

#P$ !#00 766# 7222 67!3 6344

Cha*+e #2" 6" 0" =6" =#2"

#et /orki*+ Caital )1% 0%

#P$ 72%4 7222

Cha*+e 04%"


27/42

D+D

Growth Rate after 10 Years 2% % !% 5%

#P$ till &ears =3$!# =3$!# =3$!# =3$!#

#P$ 10 Years $466 ##044 #32%2 #6%6%

'otal #P$ %4!% 7063 $27# #2%!%

Growth Rate =22" 2$" 3#" 36"

(ales Growth Rate )10% )5% 0% 5%

#P$ =##$23 =2430 7063 #6%%6

Cha*+e =26$" =#34" 0" #34"

,i-ed Cost )10% )5% 0% 5%

#P$ !4!% 7774 7063 63%2

Cha*+e 20" #0" 0" =#0"

$ariale Cost )10% )5% 0% 5%#P$ #7$%6 #2%0$ 7063 #6#6

Cha*+e #%4" 77" 0" =77"

#%4230!

#et /orki*+ Caital )10% )5% 0% 5%

#P$ 7%$3 732! 7063 67$7

Cha*+e !" 4" 0" =4"

CP3 )10% )5% 0% 5%

#P$ !!3# 7$47 7063 6#7$

Cha*+e 2%" #3" 0" =#3"


28/42

"%

=3$!#

220!7

#!#06

44"

10%

2604!

26$"

10%

%64#

=20"

10%=3!30

=#%4"

10%

6%32

=!"

10%

%2$4

=2%"


29/42

?C? Compari/on

+ear

**DC =2220 =#343 #6$ 67! %40 %!3

D+D =%33# =#26# 33% =3#0 =##$$ #0!%

=3### !2 #66 =$!! =#740 %0#

# 2 3 4 %

=6000

=%000

=4000

=3000

=2000

=#0000

#000

2000


30/42

63# 6!0 73% 7$4 !%7

##40 #20! #2!# #3%! #43$

%0$ %27 %47 %64 %!2

?ir/t 2 year/ te ?C?/ are iger -or D+D

e ne.t 3 year/ te ?C?/ -or D+D i/ igly aria&le a/ it i/ po/itie only in

e la/t % year/ te pattern o- ?C?/ -or &ot te ine/tment/ i/ /imilar

6 7 ! $ #0 ##

,C, Co4ariso*


31/42

3r) year

**DC

D+D


32/42

8S oy an) ame In)u/try

200!

rowt Rate

Reenue/ 42,000,000,000

Segment/ Sare

Vi)eo ame/ 04! 20,#60,000,000 ra)itional oy/ an) ame/ 0%2 2#,!40,000,000

# 42,000,000,000

CD 0

ra)itional oy/ an) ame/ Segment Sare

In-antEPre/'ool oy/ 0#4% 3,#66,!00,000

Doll/ 0#4# 3,07$,440,000

ut)oor Sport/ oy/ 0#23 2,6!6,320,000

ter oy/ an) ame/ 0%$# #2,$07,440,000

# 2#,!40,000,000CD 0


33/42

200$ 20#0 20## 20#2

0046 0046 0046 0046

43,$32,000,000 4%,$%2,!72,000 4!,066,704,##2 %0,277,772,%0#

2#,0!7,360,000 22,0%7,37!,%60 23,072,0#7,$74 24,#33,330,!0#22,!44,640,000 23,!$%,4$3,440 24,$$4,6!6,#3! 26,#44,44#,70#

43,$32,000,000 4%,$%2,!72,000 4!,066,704,##2 %0,277,772,%0#

0 0 0 0

3,3#2,472,!00 3,464,!46,%4$ 3,624,22$,4$0 3,7$0,$44,047

3,22#,0$4,240 3,36$,264,%7% 3,%24,2%0,74% 3,6!6,366,2!0

2,!0$,!$0,720 2,$3$,#4%,6$3 3,074,346,3$% 3,2#%,766,32$

#3,%0#,#!2,240 #4,#22,236,623 #4,77#,!%$,%0! #%,4%#,36%,04%

22,!44,640,000 23,!$%,4$3,440 24,$$4,6!6,#3! 26,#44,44#,70#0 0 0 0


34/42

20#3

0046

%2,%$0,%%0,036

2%,243,464,0#727,347,0!6,0#$

%2,%$0,%%0,036

0

3,$6%,327,473

3,!%%,$3$,#2$

3,363,6$#,%!0

#6,#62,#27,!37

27,347,0!6,0#$0


35/42

8S Retail Sale/ o- Doll/

200! 200$ 20#0

rowt Rate 003 003

Sale/ 3,#00,000,000 3,#$3,000,000 3,2!!,7$0,000

Categorie/Farge

So-t

*ini Doll/

Doll Cloting

ter 9''e//orie/


36/42

20## 20#2 20#3

003 003 003

3,3!7,4%3,700 3,4!$,077,3## 3,%$3,74$,630


37/42

200$

erall Capital :u)get

No o- 5mployee/ 4%0 5:ID9 0#%

Reenue 24%,000,000

perating ProGt 27,000,000 0##

Retailing Dii/ion

Reenue #$0,000,000

perating ProGt 4,!00,000 003

Fi'en/ing Dii/ion

Reenue 24,%00,000

perating ProGt #4,%00,000 0%$

Pro)u'tion Dii/ion

Reenue 30,%00,000perating ProGt 7,700,000 02%

0!7


38/42

Ri/(=@i/e Di/'ount Rate/

Fow 0077

*e)ium 00!4

Hig 00$


39/42

Pro)u'tion Dii/ion

New Heritage Priate Fa&el

Doll/ 9''e//orie/ Doll/ 9''e//orie/

Reenue !0,000,000 #4,000,000 26,000,000 %,000,000

perating In'ome 4,400,000 %00,000 2,300,000 300,000

Doll Pri'e Range arget 9geFowe/t #% Fowe/t 3

Hige/t 30 Hige/t #2

Pro)u't/


40/42

otal

#2%,000,000

7,%00,000


41/42

**DC

Property, Plant an) 5uipment

8/e-ul Fi-e#0 +ear/

Depre'iation *eto) *9CRS

D+D

Deelopment ime #2 *ont/

9ppli'ation Deelopment Per/onnel Co/t/

@e& 9pp Deeloper/ #%0,000

Data&a/e *anager #60,000

Sy/tem/ Integration Spe'iali/t #2%,000

9F 43%,000


42/42

Intial 5.pen)itue/ 20#0

8p-ront RD 62%,000

8p-ront *ar(eting 62%,000

Ine/tment in @or(ing Capital !00,000

Property, Plant 5uipment #,470,000

9F 3,%20,000

Intial 5.pen)itue/ 20#0 20##

8p-ront RD !4#,000

8p-ront *ar(eting 360,000

Ine/tment in @or(ing Capital #,000,000

Property, Plant 5uipment 4,6#0,000

9F %,!##,000 #,000,000

Documents

New Heritage Doll Company Case Solution