New Heritage Doll Company: Capital Budgeting Exhibit 1 Revenue Selected Operating Projections for Match My Doll Clothing Line Expansion Production Costs FL.xed Production Expense (excl depreciation) Variable Production Costs Total Production Costs Selling, General & Administrative Total Operating Expenses Operating Profit Taxes (40% tax rate) Net Income Working Capital Assumptions. Mintmum Cash Balance as 0/0 of Sales Days Sales Outstanding Inventory Tumover (prod costlending inv.) Days Payable Outstanding (based on tot. op. exp. Capital Expenditures Net Income Plus Depreciation Minus CapEx Cash Flow Discounted CF Cumlative CF 2010 1,250 1,250 (1,250), (500)? (750) 1470 (750) (1,470) (2,220) (2,220) T (2,220) 2011 4,500 2,762 1,155 3,917 350 (952) (450) (415) T (2,670) 2012 6,860 52.404 4,131 1,735 5,866 sosx (152) 508 (2,074) 2013 8,409 22. C', 5,029 2,102 7,132 1,277 12.7x (152) (1,308) 2014 9,082 5,419 2,270 7,690 1-392 12.7x (334) 473 (654) 2015 9,808 5,853 2,452 1,503 12.7x (361) 472 2016 10,593 5,521 6J21 2,648 8,969 1,623 12.7x 974 178 (389) 814 Tax Rate WACC 2017 11,440 6,000 6,827 2,860 9,687 1,753 1,052 12.7x 1,052 192 (421) 1,637 8.40% 2018 7J73 3,089 10,462 1,893 1,136 12.7x 1,136 (454) 2,526 2019 13-444 7,963 3J36 11,299 2,045 1227 12.7x 1,227 (491) 960 14,411 8,600 3,603 12,203 2,209 12.7x 1,325 242 (530) 1,037 4,523