Read the case for Harmonic Hearing Co (available in your HBR course pack) and review the Harmonic Hearing Projections (link above)

As either a 5-to-8 page paper or no more than 10 PowerPoint Slides, your team should craft a case analysis that includes the following:

Briefly describe Harmonic Hearing Co., the hearing aid industry, and the proposed transaction.

Compare and contrast the two financing alternatives presented in the case. Why do the forecasted revenues, expenses, profits, and free cash flows generated by Harmonic in years one through seven differ between the two financing alternatives?

Based on the facts of the case and the forecasts, what are the positives and negatives of financing the transaction with debt?

Based on the facts of the case and the forecasts, what are the positives and negatives of financing the transaction with equity?

Calculate the IRR on the ownership interest of Harriet Burns and Richard Irvine for the debt financing alternative and the equity financing alternative.

What is the NPV of their investment for each alternative using the following discount rates: 25%, 35%, and 45%?

Beyond the results of your quantitative analysis, what other important factors should be considered when selecting the financing alternative? Which financing alternative is the better choice in this situation?