New Heritage Doll Company

Suggested Analysis Questions:

1. Set forth and compare thebusiness case for each of the two projects under consideration by Emily Harris. Which project seems more compelling? Why?

1. Use the operating projections for each project to compute a net present value for each. Which project creates more value? (Hint: Financial cash flows)

1. Compute the IRR/MIRR, Payback and Profitability Index for each project. How, if at all, should these metrics affect Harriss deliberations?

1. What additional information might Harris need to complete her analyses and compare the two projects? What specific questions should she ask each of the project sponsors?

1. If Harris is forced to recommend one project over the other, which should she recommend? Why?

REMEMBER:

Your Excel fileMUSTcontain the following information:

1. A brief statement about the MAIN problem(s) that the protagonist of the case is facing;
2. All your financial calculations AND the assumptions you made while doing those financial calculations
3. Your recommendation(s) to the protagonist of the case BASED on your analysis. If you have several recommendations, make a case for why one might be superior to others.