New Heritage Doll Company - 3645 Words

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 of the tax shield is $647,000. The second proposal, called Design Your Own Doll, is a new product line related to the heirloom line. It is one that will allow customers to customize the looks of the dolls they purchase through the New Heritage†¦show more content†¦With constraints on financial and managerial resources, Emily Harris, vice president of New Heritage Doll Company’s production division, has a strong inclination that the capital budget committee will decline to approve both projects. Two projects, named Match My Doll Clothing Line and Design Your Own Doll line, were of main concern for Emily Harris. The first focused mainly on expanding the line to include matching all-season clothing for tween girls and their favorite dolls. The second focused on a new initiative that would employ web-based doll-design software to let users customize a doll’s features to their own liking. The Match My Doll Clothing line currently consists of a small selection of matching doll and child clothing sets for warm weather. Having become quickly successful after having been spotted in the hands of celebrities children’s arms, the brand manager of the line felt it was the perfect time for the line to expand. The investment proposal contained a large outlay for Ramp;D, market research, and marketing to maximize the profitability of quick acceptance and longer-term success for the follow-on line. The following are the upfront expenditures ($ thousands): Ramp;D - $ 625, Upfront Marketing - $625, Investment in Working Capital - $ 800, Property, Plant amp; Equipment - $ 1,470, Total Investment - $3,520. Ramp;D and marketing expenditures are deductible forShow MoreRelatedNew Heritage Doll Company Case1848 Words   |  8 PagesNEW 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 aimedRead MoreNew Heritage Doll Company : Capital Budgeting1321 Words   |  6 PagesNew Heritage Doll Company: Capital Budgeting The New Heritage Doll Company offered a unique line of dolls as an alternative to its competitors, and it wanted to extend its brand for future growth. The company has three operating divisions: production, retailing and licensing. All three divisions planned to promote projects of their own to compete for the same limited resources. Emily Harris, vice president of the production division, had to be prepared to select one of the two project proposalsRead MoreThe New Heritage Doll Company : Capital Budgeting902 Words   |  4 PagesThe New Heritage Doll Company: Capital Budgeting Summary The New Heritage Doll Company was founded in 1985 by Ingrid Beckwith, a retired psychologist, who specialized in child development. She was also a grandmother of two young girls. Beckwith created her downline to target young girls ages 3 to 12 years old. She even had a baby doll line targeting even younger girls and â€Å"celebrity† line for teens. Her goal was to develop girl s imagination and foster positive self-image. To do this she createdRead MoreNew Heritage Doll Company Write Up1317 Words   |  6 Pagesï » ¿Marina Chmykhalo-Friermood Professor N. Cohen FINA 6273-Section 10 October 23, 2014 New Heritage Doll Company Write-up Introduction New Heritage Doll Company is a firm that has ventured into doll production which has sought to extend its brand in order to broaden its market framework and more importantly capitalize on high levels of customer loyalty. The vice president of the Company, Emily Harris, is to forward her project proposal to the Budgeting Committee for evaluation. The Vice-president’sRead MoreMarketing Plan For New Heritage Doll Company1133 Words   |  5 PagesIntroduction New Heritage Doll Company operates in doll industry, proposing products with unique storylines. Two project proposals will be considered during the firm’s capital budgeting meeting in October. The first one called Match My Doll Clothing Line is an expansion of an existing product line, consisting in matching girl and doll clothes. The second on is Design Your Own Doll, which will allow users to create a customize doll. The committee could decline both projects, so vice president EmilyRead MoreNew Heritage Doll Company: Capital Budgeting3226 Words   |  13 PagesNew Heritage Doll Company: Capital Budgeting In mid-September of 2010/ Emily Harris, vice president of New Heritage Doll Companys production division, was weighing project proposals for the companys upcoming capital budgeting meetings in October. Two proposals stood out based on their potential to strengthen the divisions innovative product lines and drive future growth. However, due to constraints on financial and managerial resources, Harris knew it was possible that the firms capital budgetingRead MoreNew Heritage Doll Company: Capital Budgeting3236 Words   |  13 PagesNew Heritage Doll Company: Capital Budgeting In mid-September of 2010/ Emily Harris, vice president of New Heritage Doll Companys production division, was weighing project proposals for the companys upcoming capital budgeting meetings in October. Two proposals stood out based on their potential to strengthen the divisions innovative product lines and drive future growth. However, due to constraints on financial and managerial resources, Harris knew it was possible that the firms capital budgetingRead MoreNew Heritage Doll Company: Business Overview2186 Words   |  9 PagesIndex Executive summery†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦1 Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.2 Case analysis Match My Doll Clothing†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.2 Design Your Own Doll†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..3 Comparison†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦4 Additional Questions†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦5 Recommendations†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..5 Appendix Appendix 1: calculation formulas, definitions and assumptions†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Read MoreNew Heritage Doll Company Solution3448 Words   |  14 Pages2020 26.178 24.464 10 years $ 8.778 Profitability Index NPV/Initial Investment 1,32 NPV of Match My Doll Clothing Line Extension TV growth rate 1% 2% 6.141 $ 7.292 $ 5.075 $ 5.950 $ 4.314 $ 5.019 $ NPV if TV=BV of NWC + PPE $ 3.011 $ 2.687 $ 2.425 Discount rate 7,70% 8,40% 9,00% $ $ $ 0% 5.289 $ 4.408 $ 3.766 $ 3% 8.932 7.150 5.958 NPV of Design Your Own Doll TV growth rate 1% 2% 7.263 $ 9.198 $ 5.526 $ 6.998 $ 4.294 $ 5.479 $ NPV if TV=BV of NWC + PPE $ 3.567 $ 2.980 $Read MoreNew Heritage734 Words   |  3 PagesThe 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