Hi. Thanks for your help on the previous questions. This attached file was the first question that i didn't send. I was wondering if the npv and ire that you calculated can be reproduced in this excel file. The actual case given to us is online, so let me know. Thanks

New Heritage Doll Company: Capital Budgeting Exhibit 1 Selected Operating Projections for Match My Doll Clothing Line Expansion 2010 2012 6,860 52.4% 2013 8,409 22.6% 2014 9,082 8.0% 2015 9,808 8.0% 2016 10,593 8.0% 2017 11,440 8.0% 2018 12,355 8.0% 2019 13,344 8.0% 2020 14,411 8.0% 575 2,035 152 2,762 1,155 3,917 575 3,404 152 4,131 1,735 5,866 587 4,291 152 5,029 2,102 7,132 598 4,669 152 5,419 2,270 7,690 610 5,078 164 5,853 2,452 8,305 622 5,521 178 6,321 2,648 8,969 635 6,000 192 6,827 2,860 9,687 648 6,519 207 7,373 3,089 10,462 660 7,079 224 7,963 3,336 11,299 674 7,685 242 8,600 3,603 12,203 (1,250) Operating Profit 2011 4,500 0 1,250 1,250 Revenue Revenue Growth Production Costs Fixed Production Expense (excl depreciation) Variable Production Costs Depreciation Total Production Costs Selling, General & Administrative Total Operating Expenses 583 994 1,277 1,392 1,503 1,623 1,753 1,893 2,045 2,209 3.0% 59.2x 7.7x 30.8x 3.0% 59.2x 8.3x 30.9x 3.0% 59.2x 12.7x 31.0x 3.0% 59.2x 12.7x 31.0x 3.0% 59.2x 12.7x 31.0x 3.0% 59.2x 12.7x 31.0x 3.0% 59.2x 12.7x 31.0x 3.0% 59.2x 12.7x 31.0x 3.0% 59.2x 12.7x 31.0x 3.0% 59.2x 12.7x 31.0x Working Capital Assumptions: Minimum Cash Balance as % of Sales Days Sales Outstanding (365 day year) Inventory Turnover (prod. cost/ending inv.) Days Payable Outstanding (based on tot. op. exp.-depr.) Capital Expenditures Tax Rate Discount Factor Terminal Value growth factor 1,470 40% 8.4% 3.0% 952 152 152 334 361 389 421 454 491 530 Net Working Capital Accounts Cash Accounts Receivable Inventory Accounts Payable Net Working Capital DNWC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 0 2010 1 2011 2 2012 3 2013 4 2014 5 2015 6 2016 7 2017 8 2018 9 2019 10 2020 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 NPV Analysis Free Cash Flows EBIT (1-t) 800 800 period plus depreciation less DNWC less capital expenditures Free Cash Flows Terminal Value Cash Flows Discount factor Present value NPV IRR Analysis Cash Flows IRR Payback Analysis Cash flows Cumulative cash flow payback period 5 year Cumulative EBITDA Profitability Index NPV/Initial Investment New Heritage Doll Company: Capital Budgeting Exhibit 2 Selected Operating Projections for Design Your Own Doll 2010 2012 6,000 2013 14,360 139.3% 2014 20,222 40.8% 2015 21,435 6.0% 2016 22,721 6.0% 2017 24,084 6.0% 2018 25,529 6.0% 2019 27,061 6.0% 2020 28,685 6.0% 0 435 0 0 435 0 435 1,650 1,683 1,717 1,751 1,786 1,822 1,858 1,895 1,933 2,250 310 4,210 1,240 5,450 7,651 310 9,644 2,922 12,566 11,427 310 13,454 4,044 17,498 12,182 436 14,369 4,287 18,656 12,983 462 15,231 4,544 19,775 13,833 490 16,145 4,817 20,962 14,736 520 17,113 5,106 22,219 15,694 551 18,140 5,412 23,553 16,712 584 19,229 5,737 24,966 (1,201) Operating Profit 2011 0 1,201 1,201 Revenue Revenue Growth Production Costs Fixed Production Expense (excl depreciation) Additional development costs (IT personnel) Variable Production Costs Depreciation Total Production Costs Selling, General & Administrative Total Operating Expenses (435) 550 1,794 2,724 2,779 2,946 3,123 3,310 3,509 3,719 3.0% 59.2x 12.2x 33.7x 3.0% 59.2x 12.3x 33.8x 3.0% 59.2x 12.6x 33.9x 3.0% 59.2x 12.7x 33.9x 3.0% 59.2x 12.7x 33.9x 3.0% 59.2x 12.7x 33.9x 3.0% 59.2x 12.7x 33.9x 3.0% 59.2x 12.7x 33.9x 3.0% 59.2x 12.7x 33.9x Working Capital Assumptions: Minimum Cash Balance as % of Sales Days Sales Outstanding (365 day year) Inventory Turnover (prod. cost/ending inv.) Days Payable Outstanding (based on tot. op. exp.-depr) Capital Expenditures Tax Rate Discount Factor Terminal Value growth factor 4,610 40% 9.0% 3.0% 0 310 310 2,192 826 875 928 983 1,043 1,105 Net Working Capital Accounts Cash Accounts Receivable Inventory Accounts Payable Net Working Capital DNWC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 0 2010 1 2011 2 2012 3 2013 4 2014 5 2015 6 2016 7 2017 8 2018 9 2019 10 2020 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 NPV Analysis Free Cash Flows EBIT (1-t) period plus depreciation less DNWC less capital expenditures Free Cash Flows Terminal Value Cash Flows Discount factor Present value NPV IRR Analysis Cash Flows IRR Payback Analysis Cash flows Cumulative cash flow Payback period 5 year Cumulative EBITDA Profitability Index NPV/Initial Investment New Heritage Doll Company: Capital Budgeting Selected Operating Projections for Match My Doll Clothing Line Expansion Exhibit 1 2010 2011 2013 2014 2015 4,500 6,860 8,409 9,082 9,808 52.4% 22.6% 8.0% 8.0% 575 575 587 598 610 2,035 3,404 4,291 4,669 5,078 152 Revenue 2012 152 152 152 164 Revenue Growth Production Costs Fixed Production Expense (excl depreciation) Variable Production Costs Depreciation Total Production Costs 0 2,762 4,131 5,029 5,419 5,853 Selling, General & Administrative 1,250 1,155 1,735 2,102 2,270 2,452 Total Operating Expenses 1,250 3,917 5,866 7,132 7,690 8,305 583 994 1,277 1,392 1,503 Minimum Cash Balance as % of Sales 3.0% 3.0% 3.0% 3.0% 3.0% Days Sales Outstanding 59.2x 59.2x 59.2x 59.2x 59.2x Operating Profit (1,250) Working Capital Assumptions: Inventory Turnover (prod. cost/ending inv.) 7.7x NWC (Millions) 2011 Revenue 4,500 Direct Cost (incl. 2,762 Dep.) Admin Costs 1,155 Gross Profit 583 Taxes (40%) 233 Net Income 350 Add Dep. 152 CapEx 952 Change in NWC 894 Cash Flow (1,345) NVP Discount Rate 2012 6,860 4,131 1,735 994 398 596 152 152 427 169 2013 8,409 5,029 2,102 1,277 511 766 152 152 84 682 $2,152 8.40% 2014 9,082 5,419 2,270 1,392 557 835 152 334 113 541 12.7x 12.7x 31.0x 31.0x 31.0x 952 1,470 12.7x 30.9x 152 152 334 361 894 Capital Expenditures 8.3x 30.8x Days Payable Outstanding (based on tot. op. exp.) 1,321 1,406 1,518 1,639 2015 9,808 5,853 2,452 1,503 601 902 164 361 121 584 2016 10,593 6,321 2,648 1,623 649 974 178 389 131 632 2017 11,440 6,827 2,860 1,753 701 1,052 192 421 142 682 2018 12,355 7,373 3,089 1,893 757 1,136 207 454 153 736 2016 2017 2018 2019 2020 10,593 11,440 12,355 13,344 14,411 8.0% 8.0% 8.0% 8.0% 8.0% 622 635 648 660 674 5,521 6,000 6,519 7,079 7,685 178 192 207 224 242 6,321 6,827 7,373 7,963 8,600 2,648 2,860 3,089 3,336 3,603 8,969 9,687 10,462 11,299 12,203 1,623 1,753 1,893 2,045 2,209 3.0% 3.0% 3.0% 3.0% 3.0% 59.2x 59.2x 59.2x 59.2x 59.2x 12.7x 12.7x 12.7x 12.7x 12.7x 31.0x 31.0x 31.0x 31.0x 31.0x 389 421 454 491 530 1,771 1,912 2,065 2,231 2,409 2019 13,344 7,963 3,336 2,045 818 1,227 224 491 165 795 2020 14,411 8,600 3,603 2,209 883 1,325 242 530 178 859 New Heritage Doll Company: Capital Budgeting Selected Operating Projections for Design Your Own Doll Exhibit 2 2010 2011 2012 2013 2014 0 6,000 14,360 20,222 Revenue Revenue Growth 139.3% 40.8% Production Costs Fixed Production Expense (excl depreciation) 0 1,650 1,683 1,717 Variable Production Costs 0 2,250 7,651 11,427 Depreciation 0 310 310 310 Total Production Costs 0 4,210 9,644 13,454 Selling, General & Administrative 1,201 0 1,240 2,922 4,044 Total Operating Expenses 1,201 0 5,450 12,566 17,498 (1,201) 0 550 1,794 2,724 Operating Profit Working Capital Assumptions: Minimum Cash Balance as % of Sales 3.0% 3.0% 3.0% Days Sales Outstanding 59.2x 59.2x 59.2x Inventory Turnover (prod. cost/ending inv.) 12.2x 12.3x 12.6x Days Payable Outstanding (based on tot. op. exp.) 33.7x 33.8x 33.9x 0 310 310 2,192 0 996 2,381 3,323 Capital Expenditures 4,610 NWC 2,011 Revenue 0 Direct Cost (incl. Dep.) 0 Admin Costs 0 Gross Profit 0 Taxes (40%) 0 Net Income 0 Add Dep. 0 CapEx 0 Change in NWC 0 Cash Flow -1,000 2,012 6,000 2,013 14,360 2,014 20,222 2,015 21,435 2,016 22,721 2,017 24,084 4,210 9,644 13,454 14,369 15,231 16,145 1,240 550 220 330 2,922 1,794 718 1,076 4,044 2,723 1,089 1,634 4,287 2,779 1,112 1,667 4,544 2,946 1,178 1,767 4,817 3,122 1,249 1,873 310 310 310 436 462 490 310 310 2,192 826 875 928 995 1,385 942 190 211 223 -665 -309 -1,190 1,088 1,144 1,212 NVP $1,376 Discount Rate 9.00% High Risk 2015 2016 2017 2018 2019 2020 21,435 22,721 24,084 25,529 27,061 28,685 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 1,751 1,786 1,822 1,858 1,895 1,933 12,182 12,983 13,833 14,736 15,694 16,712 436 462 490 520 551 584 14,369 15,231 16,145 17,113 18,140 19,229 4,287 4,544 4,817 5,106 5,412 5,737 18,656 19,775 20,962 22,219 23,553 24,966 2,779 2,946 3,123 3,310 3,509 3,719 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 59.2x 59.2x 59.2x 59.2x 59.2x 59.2x 12.7x 12.7x 12.7x 12.7x 12.7x 12.7x 33.9x 33.9x 33.9x 33.9x 33.9x 33.9x 826 875 928 983 1,043 1,105 3,513 3,723 3,947 4,184 4,435 4,701 2,018 25,529 2,019 27,061 2,020 28,685 17,113 18,140 19,229 5,106 3,311 1,324 1,986 5,412 3,509 1,404 2,105 5,737 3,719 1,488 2,231 520 551 584 983 1,043 1,105 237 251 266 1,286 1,362 1,444 " *% 0 1 ' 10 2 ' 3 +4 ' , ! 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