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Mountain Man Assignment

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Business Case Template Executive summary Provide a brief overview of the purpose of the case, the main conclusions, and the final decision recommendation. A. Problem situation What problem do you try to solve and what is the proposed solution? Describe the project, the reasons for this investment, and the major issues that need to be addressed. B. Differential advantage: how does the proposed solution create value? A. How does the proposed solution create value for the firm?  Identify and discuss sources of value and risk B. How does the proposed solution create value to the customers?  Identify and discuss sources of value and risk C. How does the proposed solution differentiate from competing products?  Identify and discuss sources of value and risk Note: At a minimum include issues related to brand value and cannibalization. C. Financial feasibility analysis List all major assumptions (they should relate to your analyses in sections A and B) for your “most likely” scenario. Describe the cash outflows and inflows associated with the proposed solution. a. Perform a break-even analysis How much does the firm need to sell in order to break-even? Is it feasible to break-even within the desired time frame? b. Construct a cash flow diagram The cash flow diagram should contain all the costs (split them out) and the expected revenues/contribution. Include net cash flow, cumulative net cash flow, and present values (see cash flow table example). Note: make sure to include the potential loss in MM lager contribution due to cannibalization. c. Use the cash flow diagram to calculate the (discounted) Payback period, Net Present Value, and Internal Rate of Return D. Risks & uncertainties Identify which assumptions are most sensitive and how changes influence the financial analysis. Perform a sensitivity analysis and create a worst case and best case scenario. Note: the

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