NPV Analysis for Match My Doll Clothing Line Extension ($ in thousands)

2010
Revenues
Revenue Growth
Production Costs
Fixed Production expenses
(excluding depreciation)
Variable Production Costs
Depreciation
Total Production Costs
Selling, General & Administrative
expenses
Total Operating Expenses
Operating Profits
Revenues
SG&A / Revenues

2011
4500

2012
6860
52.44%

2013
8409
22.58%

575
2035
152
2762

575
3404
152
4131

587
4291
152
5030

1250
1250

1155
3917

1735
5866

2102
7132

-1250

583
12.96%
25.67%

994
14.49%
25.29%

1277
15.19%
25.00%

3%
59.2

3%
59.2

3%
59.2

7.7

8.3

12.7

30.8

30.9

31

1470

952
-35.24%

152
-84.03%

152
0.00%

2010

2011

2012

2013

800

135
730
339
331
873
73
19.41%
1
2011

206
1113
479
497
1301
428
18.97%
2
2012

252
1364
384
606
1395
93
16.58%
3
2013

Working Capital Assumptions

Min Cash bal as a % of Sales
Days Sales Outstanding
Inventory turnover (production
cost/ending inv.)
Days Payables Outstanding (based
on total op. expenses)
Capital Expenditure
Growth in Capex

Net Working Capital Accounts

Cash
Accounts Receivable
Inventory
Accounts Payables
Net Working Capital
Change in NWC
NWC/ Sales

0
2010

Free Cash Flows to Firm

NOPAT = EBIT*(1-Tc)
plus: depreciation
less: Change in NWC
Less: Capital Expenditure
Free Cash Flows to Firm
Terminal Value g = 3%
Initial Outlays
Net Working Capital
Net Property, plant & equipment
FCFF
Discount Factor = 8.4%
PV of Future CFs
Cumulative CFs
Discounted Payback period
NPV
NPV (Without TV)
IRR
TV growth
Discount Rate

-750

-750

-800
-1470
-3020
1
-3020
-3020
9 years &
one month
7200
-115
24%
3%
8.40%

349.8
152
73
952
-523

596.4
152
428
152
168

766.2
152
93
152
673

-523
0.9225
-483
-3503

168
0.8510
143
-3360

673
0.7851
528
-2831

$ in thousands)
2014
9082
8.00%

2015
9808
7.99%

2016
10593
8.00%

2017
11440
8.00%

2018
12355
8.00%

2019
13344
8.00%

598
4669
152
5419

610
5078
164
5852

622
5521
178
6321

635
6000
192
6827

648
6519
207
7374

660
7079
224
7963

2270
7689

2452
8304

2648
8969

2860
9687

3089
10463

3336
11299

1393
15.34%
24.99%

1504
15.33%
25.00%

1624
15.33%
25.00%

1753
15.32%
25.00%

1892
15.31%
25.00%

2045
15.33%
25.00%

3%
59.2

3%
59.2

3%
59.2

3%
59.2

3%
59.2

3%
59.2

12.7

12.7

12.7

12.7

12.7

12.7

31

31

31

31

31

31

334
119.74%

361
8.08%

389
7.76%

421
8.23%

454
7.84%

491
8.15%

2014

2015

2016

2017

2018

2019

272
1473
415
653
1507
113
16.60%
4
2014

294
1591
448
705
1628
120
16.59%
5
2015

318
1718
484
762
1758
130
16.59%
6
2016

343
1855
522
823
1898
141
16.59%
7
2017

371
2004
564
889
2050
152
16.59%
8
2018

400
2164
609
960
2214
164
16.59%
9
2019

835.8
152
113
334
541

902.4
164
120
361
585

974.4
178
130
389
633

1051.8
192
141
421
682

1135.2
207
152
454
736

1227
224
164
491
796

541
0.7242
392
-2439

585
0.6681
391
-2049

633
0.6163
390
-1658

682
0.5686
388
-1270

736
0.5245
386
-884

796
0.4839
385
-499

2020
14411
8.00%

674
7685
242
8601
3603
12204
2207
15.31%
25.00%

3%
59.2
12.7
31
530
7.94%
2020
432
2337
658
1037
2391
177
16.59%
10
2020

1324.2
242
177
530
859
16388

17247
0.4464
7699

NPV Analysis for Design Your Own Doll ($ in thousands)

2010
Revenues
Revenue Growth
Production Costs
Fixed Production expenses
(excluding depreciation)
Additional Development Cost (IT
Personnel)
Variable Production Costs
Depreciation
Total Production Costs
Selling, General & Administrative
expenses
Total Operating Expenses
Operating Profits
Revenues
SG&A / Revenues

2011
0

2012
6000

2013
14360
139.33%

1650

1683

435
0
0
435

2250
310
4210

7651
310
9644

1201
1201

0
435

1240
5450

2922
12566

-1201

-435

550
9.17%
20.67%

1794
12.49%
20.35%

3%
59.2

3%
59.2

12.2

12.3

33.7

33.8

Working Capital Assumptions

Min Cash bal as a % of Sales
Days Sales Outstanding
Inventory turnover (production
cost/ending inv.)
Days Payables Outstanding (based
on total op. expenses)
Capital Expenditure
Growth in Capex

Net Working Capital Accounts

Cash
Accounts Receivable
Inventory
Accounts Payables
Net Working Capital
Change in NWC
NWC/ Sales

4610

310

310
0.00%

2010

2011

2012

2013

180
973
320
503
970
-30
16.16%

431
2329
759
1164
2355
1385
16.40%

1000
1000

Free Cash Flows to Firm

NOPAT = EBIT*(1-Tc)
plus: depreciation
less: Change in NWC
Less: Capital Expenditure
Free Cash Flows to Firm
Terminal Value g = 3%
Initial Outlays
Net Working Capital
Net Property, plant & equipment
FCFF
Discount Factor = 9%
PV of Future CFs
Cumulative CFs
Discounted Payback period
NPV
NPV (Without TV)
IRR
TV Growth
Discount Rate

0
2010

1
2011

2
2012

3
2013

-720.6

-261
0

330
310
-30
310
360

1076.4
310
1385
310
-309

360
0.8417
303
-6184

-309
0.7722
-239
-6423

-721

0
-261

-1000
-4610
-5331
1
-5331
-5331
9 years &
four months
7141
-3326
18%
3%
9%

-1261
0.9174
-1157
-6487

usands)
2014
20222
40.82%

2015
21435
6.00%

2016
22721
6.00%

2017
24084
6.00%

2018
25529
6.00%

2019
27061
6.00%

1717

1751

1786

1822

1858

1895

11427
310
13454

12182
436
14369

12983
462
15231

13833
490
16145

14736
520
17114

15694
551
18140

4044
17498

4287
18656

4544
19775

4817
20962

5106
22220

5412
23552

2724
13.47%
20.00%

2779
12.96%
20.00%

2946
12.97%
20.00%

3122
12.96%
20.00%

3309
12.96%
20.00%

3509
12.97%
20.00%

3%
59.2

3%
59.2

3%
59.2

3%
59.2

3%
59.2

3%
59.2

12.6

12.7

12.7

12.7

12.7

12.7

33.9

33.9

33.9

33.9

33.9

33.9

2192
607.10%

826
-62.32%

875
5.93%

928
6.06%

983
5.93%

1043
6.10%

2014

2015

2016

2017

2018

2019

607
3280
1043
1625
3305
949
16.34%

643
3477
1097
1733
3484
179
16.25%

682
3685
1163
1837
3693
209
16.25%

723
3906
1233
1947
3915
221
16.25%

766
4141
1307
2064
4149
235
16.25%

812
4389
1385
2187
4398
249
16.25%

4
2014

5
2015

6
2016

7
2017

8
2018

9
2019

1634.4
310
949
2192
-1197

1667.4
436
179
826
1098

1767.6
462
209
875
1146

1873.2
490
221
928
1214

1985.4
520
235
983
1288

2105.4
551
249
1043
1364

-1197
0.7084
-848
-7271

1098
0.6499
714
-6557

1146
0.5963
683
-5874

1214
0.5470
664
-5210

1288
0.5019
646
-4564

1364
0.4604
628
-3936

2020
28685
6.00%

1933

16712
584
19229
5737
24966
3719
12.96%
20.00%

3%
59.2
12.7
33.9
1108
6.23%
2020
861
4652
1468
2319
4662
264
16.25%

10
2020
2231.4
584
264
1108
1443
24779

26223
0.4224
11077