------------------------------------------------- New Heritage Doll Co. ------------------------------------------------- Capital Budgeting [Author] New Heritage Doll Company: Capital Budgeting In the case of the New Heritage Doll Company, Emily Harris, Vice President of the company’s production division, is in the process of reviewing and analyzing two capital budgeting proposals within her division. Both proposals intend to spur long-term growth and to strengthen the division’s innovative
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The New Heritage Doll Company is founded in 1985 and has long history. The management of company pay attention to the doll developing girls’ the imagination and self-image. The company tends to create some new products to dominate the market. The U.S. retail sales of dolls totaled $3.1 billion in 2008 while the New Heritage Doll Company’s revenue approximately $245 million of revenue, owning less than 10% of market share. There is good reason to believe that the New Heritage Doll Company has a potential
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page » Business and Management New Heritage DollIn: Business and Management New Heritage Doll New Heritage Doll Company: Capital Budgeting MGT 6060 20 September 2011 Overview Two business proposals from the Production division of the New Heritage Doll Company are being considered for submission to the capital budgeting committee. Only one proposal will be submitted. The proposals are: Match My Doll Clothing Line Expansion and Design Your Own Doll. A systematic process will
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NEW HERITAGE DOLL COMPANY FINA 6278 Case 1 I. Executive Summary New Heritage Doll Company is a U.S based children toy manufacturer with a well-known national brand: the New Heritage. With its existing three divisions, New Heritage proposed two potential investment projects in order to expand its business while the doll industry was facing a relatively low growth rate. The first proposal is the Match My Doll Clothing line expansion, which is to expand a new clothing product line aimed
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New Heritage Doll Company Financial Assessment Executive Summary New Heritage Doll Company’s production division has two serious proposals that will be presented to the capital budget committee. The first proposal, named Match My Doll Clothing Line extension, will add year round seasonal clothing to Heritage’s product line. This proposal’s NPV was $7,326.11. The IRR was 24.10% and the MIRR was 20.68%. The Profitability Index was 3.08 and the payback period was 7.11 years. The value
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Dylan Steele Professor Elhaj New Heritage Doll Company March 16th 2016 Case Memo This case study was very interesting, and challenging because of the choice that had to be made between the two successful companies. The two investment projects New Heritage had to choose between were Design Your Own Doll and Match My Doll Clothing Line Expansion. After studying the case and figuring out some numbers without going to in depth, Match My Doll Clothing Line Expansion was more compelling at first
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New Heritage Doll Company: Capital Budgeting The New Heritage Doll Company’s Vice-President of Production, Emily Harris, had to decide which of two proposals she should approve for the company’s upcoming capital budgeting meetings. The first project involved expanding an existing “Match My Doll Clothing” line, which had a proven record of success in the past. The second project introduced a new initiative called “Design Your Own Doll”, which used a web-based software enabling users to customize
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proposals, I suggest we recommend “Match My Doll Cloth Line” project over “Design Your Own Doll” project. The “Match My Doll Cloth Line” expansion will be a safer and more profitable investment for New Heritage. A forecast of cash flow for the next 10 years was developed for both projects. It is found that NPV for the two projects are very close, with Matching My Doll Cloth Line’s at $7,648 and Design Your Own Doll’s at $7,996. However, the Matching My Doll Cloth Line expansion has a higher IRR (20%)
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------------------------------------------------- Case Study Instructions: This is an individual assessment. You are acting as the CEO of New Heritage Doll company and you need to decide which investment projects can create values for shareholders’ wealth, so that the company can receive funding in the next five years. Your task is to evaluate proposed projects using the financial and qualitative information provided and to select projects to be approved for a given year’s investment plan using
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New Heritage Doll New Heritage Doll Company: Capital Budgeting MGT 6060 20 September 2011 Overview Two business proposals from the Production division of the New Heritage Doll Company are being considered for submission to the capital budgeting committee. Only one proposal will be submitted. The proposals are: Match My Doll Clothing Line Expansion and Design Your Own Doll. A systematic process will be used to determine which proposal to recommend. Criteria Include: 1. Comparison of the business
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