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%
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%
0
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
0
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%
