In this simulation, you will act as the Capital Committee of New Heritage Doll Company, tasked with selecting and allocating capital across the company's three divisions. You will evaluate a diverse set of competing investment proposals and make decisions regarding 27 separate proposals over a five-year period. You will confront a range of project types including replacement investments, expansion investments, investments in mutually exclusive projects, interdependent projects, and projects with growth options. To evaluate them, you must examine outlays, cash flow patterns, and common metrics such as NPV, IRR, and Payback, with or without capital constraints.

Details

1. Read the introductory materials for the simulation found in your HBR course pack: Timothy Leuhrman,Finance Simulation: Capital Budgeting, Harvard Business Publishing (2010).
3. Complete the simulation, which is listed on the Resource page and can also be found in yourCourse Pack during the F2F.