Project 1 - Match My Doll Clothin

2010 2011 2012 2013 2014 2015

Revenue 0 4500 6860 8409 9082 9808
Revenue Growth 52.4% 22.6% 8.0% 8.0%
Production Costs
Fixed Production Expense 575 575 587 598 610
Variable Production Costs 2035 3404 4291 4669 5078
Depreciation 152 152 152 152 164
Total Production Costs 0 2762 4131 5030 5419 5852
SG&A 1250 1155 1735 2102 2270 2452
Total Operating Expenses 1250 3917 5866 7132 7689 8304

Operating Profit -1250 583 994 1277 1393 1504

40% Taxes -500 233 398 511 557 602
After Tax EBIT -750 350 596 766 836 902
+ Depreciation 0 152 152 152 152 164
- Capex 1470 952 152 152 334 361
- Change in WC 800 93 427 87 113 121
Cash Flow to Firm -3020 -543 170 679 541 584

NPV 5498.07
IRR 21.0%
Discount Rate 8.4%

WC Assumption: 2010 2011 2012 2013 2014 2015

Min Cash Balance 3% 3% 3% 3% 3%
Days Sales O/S 59.2 59.2 59.2 59.2 59.2
Inventory T/O 7.7 8.3 12.7 12.7 12.7
Days Payables O/S 30.8 30.9 31 31 31
Days Inventory O/S 46.8 43.4 28.3 28.3 28.3
Cash Conversion Cycle 75.2 71.7 56.5 56.5 56.5

WC Assumption: 2010 2011 2012 2013 2014 2015

Min Cash Balance (% of Sales) 135.0 205.8 252.3 272.5 294.2
Receivables 729.9 1112.6 1363.9 1473.0 1590.8
Inventory 358.7 497.7 396.1 426.7 460.8
Payables 330.5 496.6 605.7 653.0 705.3
Total 800 893.0 1319.5 1406.5 1519.1 1640.5
 Project 2 - Make your Own D
2010 2011 2012 2013 2014 2015
Revenue 0 0 6000 14360 20222 21435
Revenue Growth 139.3% 40.8% 6.0%
Production Costs
Fixed Production Expense 0 1650 1683 1717 1751
Variable Production Costs 0 2250 7651 11427 12182
Depreciation 0 310 310 310 436
Total Production Costs 0 0 4210 9644 13454 14369
SG&A 1201 0 1240 2922 4044 4287
Total Operating Expenses 1201 0 5450 12566 17498 18656

Operating Profit -1201 0 550 1794 2724 2779

40% Taxes -480.4 0 220 718 1090 1112
After Tax EBIT -720.6 0 330 1076 1634 1667
+ Depreciation 0 0 310 310 310 436
- Capex 4610 0 310 310 2192 826
- Change in WC - 1,000 -9 1,367 963 198
Cash Flow to Firm -5331 -1000 339 -291 -1210 1080

NPV 5037.15
IRR 15.6%
Discount Rate 9.0%

WC Assumption: 2010 2011 2012 2013 2014 2015

Min Cash Balance (% of Sales) 3% 3% 3% 3% 3%
Days Sales O/S (Days) 59.2 59.2 59.2 59.2 59.2
Inventory T/O (Times) 12.2 12.3 12.6 12.7 12.7
Days Payables O/S (Days) 33.7 33.8 33.9 33.9 33.9
Days Inventory O/S (Days) 29.508197 29.26829 28.57143 28.34646 28.34646
Cash Conversion Cycle 55.008197 54.66829 53.87143 53.64646 53.64646

WC Requirement: 2010 2011 2012 2013 2014 2015

Min Cash Balance (% of Sales) 180.0 430.8 606.7 643.1
Receivables 973.2 2329.1 3279.8 3476.6
Inventory 342.3 765.4 1059.4 1131.4
Payables 504.7 1167.1 1625.2 1732.7
Total 1000.0 990.7 2358.2 3320.7 3518.3
Doll Clothing Line
2016 2017 2018 2019 2020 Terminal Value
10593 11440 12355 13344 14411
8.0% 8.0% 8.0% 8.0% 8.0%

622 635 648 660 674

5521 6000 6519 7079 7685
178 192 207 224 242
6321 6827 7374 7963 8601
2648 2860 3089 3336 3603
8969 9687 10463 11299 12204

1624 1753 1892 2045 2207

650 701 757 818 883
974 1052 1135 1227 1324
178 192 207 224 242
389 421 454 491 530
131 142 153 165 178
632 681 735 795 858 13670.52

2016 2017 2018 2019 2020

3% 3% 3% 3% 3%
59.2 59.2 59.2 59.2 59.2
12.7 12.7 12.7 12.7 12.7
31 31 31 31 31
28.3 28.3 28.3 28.3 28.3
56.5 56.5 56.5 56.5 56.5

2016 2017 2018 2019 2020

317.8 343.2 370.7 400.3 432.3
1718.1 1855.5 2003.9 2164.3 2337.3
497.7 537.6 580.6 627.0 677.2
761.8 822.7 888.6 959.6 1036.5
1771.9 1913.5 2066.5 2232.0 2410.4
your Own Doll
2016 2017 2018 2019 2020 Terminal Value
22721 24084 25529 27061 28685
6.0% 6.0% 6.0% 6.0% 6.0%

1786 1822 1858 1895 1933

12983 13833 14736 15694 16712
462 490 520 551 584
15231 16145 17114 18140 19229
4544 4817 5106 5412 5737
19775 20962 22220 23552 24966

2946 3122 3309 3509 3719

1178 1249 1324 1404 1488
1768 1873 1985 2105 2231
462 490 520 551 584
875 928 983 1043 1105
211 224 237 252 267
1143 1212 1285 1362 1444 21039.11

2016 2017 2018 2019 2020

3% 3% 3% 3% 3%
59.2 59.2 59.2 59.2 59.2
12.7 12.7 12.7 12.7 12.7
33.9 33.9 33.9 33.9 33.9
28.34646 28.34646 28.34646 28.34646 28.34646
53.64646 53.64646 53.64646 53.64646 53.64646

2016 2017 2018 2019 2020

681.6 722.5 765.9 811.8 860.6
3685.2 3906.2 4140.6 4389.1 4652.5
1199.3 1271.3 1347.6 1428.3 1514.1
1836.6 1946.9 2063.7 2187.4 2318.8
3729.4 3953.1 4190.3 4441.8 4708.4