New Heritage Doll Company
Summary
NPV !! P Pay'a() perio*
PV o/ e2pli(it /ore(ating perio* PV o/ terminal alue otal otal
MMDC 7,160 "#$0% "$37
DYOD 7,063 17$&% 1$3"
7$+
10
MMDC
DYOD
-136. -136.
-3,373 -3,373..
7,"&6 7,160
10,#36 7,063
MMDC Moderate risk
a2 rate Di(ount rate 4rowt5 rate a/ter 10 year Exhibit 1 Year !eenue growt5 rate !eenue 2pene
#0% 8.40% 3$0% "010
"011
"01" +"$#0% 6,+
25i'it 1 25i'it 1
0
#,+00
25i'it 1
0
+7+
+7+
Varia'le pro*u(tion e2pene 25i'it 1 Depre(iation 25i'it 1
0 0
",03+ 1+"
3,#0# 1+"
0 6"+
",76"
#,131
1,1++
1,73+
3,&17
+,66
@i2e* pro*u(tion e2pene e2(lu*ing *epre(iation
otal pro*u(tion e2pene 8p/ront !9D
8p/ront mar)eting S4: otal operating e2pene
Summation nitial e2pen*iture e2pne* -p$+, para 1, line 1. 25i'it 1
6"+
Summation
1,"+0
; P:=;-1>t.
Di
-1,"+0. -7+0.
+3 3+0
&&" +&+
Cape2
25i'it 1
1,#70
&+"
1+"
Minimum (a5 'alan(e a % ale 25i'it 1
3$0%
3$0%
Day ale outtan*ing ?
25i'it 1
+&$"
+&$"
nentory turnoer ?
25i'it 1
7$7
$3
Day paya'le outtan*ing
25i'it 1
30$
30$&
13+
"06
730 3+& 1,""#
1,11" #& 1,16
Assumptions about working capital
Current aet Ca5 :((ount re(eia'le *ay nentory otal (urrent aet
:((ount paya'le Net wor)ing (apital n(reae in NAC @C@ erminal alue Total FCF Cumulatie total @C@ PV@ ' NPV !! P Pay'a() perio*
2pli(it /ore(at perio* (a5 Bow PV o/ e2pli(ir /ore(ating perio* erminal alue PV o/ terminal alue otal PV
00 00
331
#&7
&3 &3
1,31& #"6
-3,0"0.
-+#3.
16&
(!0"0# -3,0"0. 1$000 (!0"0# 7,160 "#$03% "$37 7$+
($4# -3,+63. 0$&"3 ($01#
1& -3,3&#. 0$+1 144
-3,0"0.
-+#3.
16&
-3,0"0.
-+01.
1##
"013 ""$60% ,#0
"01# $00% &,01
"01+ $00% &,07
"016 $00% 10,+&"
"017 $00% 11,#3&
"01 $00% 1",3+#
"01& $00% 13,3#"
+7
+&
610
6""
63+
6#
660
#,"&1 1+"
#,66& 1+"
+,07 16#
+,+"1 17
6,000 1&"
6,+1& "07
7,07& ""#
+,030
+,#1&
+,+"
6,3"1
6,"7
7,37#
7,&63
",10"
","70
",#+"
",6#
",60
3,0&
3,336
7,13"
7,6&
,30#
,&6&
&,67
10,#63
11,"&&
1,"76 766
1,3&" 3+
1,+03 &0"
1,6"3 &7#
1,7+" 1,0+1
1,&1 1,13+
",0#3 1,""6
1+"
33#
361
3&
#"1
#+#
#&1
3$0%
3$0%
3$0%
3$0%
3$0%
3$0%
3$0%
+&$"
+&$"
+&$"
+&$"
+&$"
+&$"
+&$"
1"$7
1"$7
1"$7
1"$7
1"$7
1"$7
1"$7
31$0
31$0
31$0
31$0
31$0
31$0
31$0
"+"
"7"
"&#
31
3#3
371
#00
1,36# 3&6 ",01"
1,#73 #"7 ",17"
1,+&1 #61 ",3#6
1,71 #& ",+33
1,++ +3 ",736
",00# +1 ",&++
",16# 6"7 3,1&1
606
6+3
70+
76"
"3
&
&60
1,#06 7
1,+1& 113
1,6#0 1"1
1,77" 131
1,&13 1#"
",066 1+3
","3" 16+
67
+#0
+3
631
60
73+
7&#
1 -&61. 0$616 8&
80 -"0. 0$+6& 8)
)$ #+# 0$+"+ 8$
)8 -",716. 0$7+ $
$40 -",17+. 0$7"# &1
$8 -1,+&". 0$66 &0
)&4 1,"# 0$## 84
67
+#0
+3
631
60
73+
7&#
+33
3&1
3&0
3&
37
3+
3#
"0"0 $00% 1#,#10
67# 7,6+ "#" ,601
3,603 1","0# ","06 1,3"3 +30
3$0%
+&$" 1"$7 31$0
#3" ",337 677 3,##7
1,037 ",#10 17&
+7 16,3## 1)!"01 1,##& 0$##6 )!)8
otal
+7
33 16,3## 7,"&6
-136. 7,"&6 7,160
DYOD *igh risk a2 rate Di(ount rate
#0% &.00%
4rowt5 rate a/ter 10 year Exhibit " Year !eenue growt5 rate % !eenue
3$0% "010
"011
"01"
"013 13&$30% 1#,3+
>
6,000
@i2e* pro*u(tion e2pene e2(lu*ing *epre(iation
>
1,6+0
:**itional *eelopment e2pene
>
4$
Varia'le pro*u(tion e2pene Depre(iation
> >
","+0 310
7,6+1 310
> #1 360 >
#3+
#,"10
&,6##
1,"#0
",&""
1,"01
#3+
+,#+0
1",+66
-1,"01. -7"1.
-#3+. -"61.
++0 330
1,7&" 1,07+
#,610
>
310
310
Minimum (a5 'alan(e a % ale
3$0%
3$0%
Day ale outtan*ing nentory turnoer
+&$" 1"$"
+&$" 1"$3
Day paya'le outtan*ing
33$7
33$
10
#31
2pene
otal pro*u(tion e2pene 8p/ront !9D 8p/ront mar)eting S4:
otal operating e2pene ; P: Cape2
>
1,63
:umption a'out wor)ing (apital
Current aet Ca5
>
:((ount re(eia'le nentory otal (urrent aet :((ount paya'le Net wor)ing (apital n(reae in NAC
> >
@C@ erminal alue otal @C@ Cumulatie total @C@ PV@ PV NPV !! P Pay'a() perio*
2pli(it /ore(at perio* (a5 Bow PV o/ e2pli(ir /ore(ating perio* erminal alue PV o/ terminal alue otal PV
>
&73 3#+
",3"& 7#
> >
1,#& +03
3,+## 1,16#
1,000 1,000
&&+ -+.
",30 1,3+
-+,331.
-1,"61.
33+
-310.
-+,331.
-1,"61.
33+
-310.
-+,331. 1$000 -+,331. 7,063 17$&0% 1$3" 10
-6,+&". 0$&17 -1,1+7.
-6,"+7. 0$#" ""
-6,+66. 0$77" -"3&.
-+,331.
-1,"61.
33+
-310.
-+,331.
-1,1+7.
""
-"3&.
"01# #0$0% "0,"16
"01+ 6$00% "1,#"&
"016 6$00% "",71+
"017 6$00% "#,07
"01 6$00% "+,+""
"01& 6$00% "7,0+#
1,717
1,7+1
1,76
1,""
1,+
1,&+
>
>
>
>
>
11,#"7 310
1",1" #36
1",&3 #6"
13,33 #&0
1#,736 +"0
1+,6&# ++1
13,#+#
1#,36&
1+,"31
16,1#+
17,11#
1,1#0
#,0##
#,"7
#,+##
#,17
+,106
+,#1"
17,#&
1,6+6
1&,77+
"0,&6"
"",""0
"3,++"
",71 1,631
",773 1,66#
",� 1,76#
3,116 1,6&
3,30" 1,&1
3,+0" ",101
",1&"
"6
7+
&"
&3
1,0#3
3$0%
3$0%
3$0%
3$0%
3$0%
3$0%
+&$" 1"$6
1"$7
+&$" 1"$7
+&$" 1"$7
+&$" 1"$7
+&$" 1"$7
33$&
33$&
33$&
33$&
33$&
606
6#3
61
7""
766
1"
3,"7& 1,06
3,#76 1,131
3,6# 1,1&&
3,&0+ 1,"71
#,1#0 1,3#
#,3 1,#"
#,&+3 1,6"+
+,"+0 1,733
+,+6+ 1,37
+,&& 1,
6,"+3 ",06#
6,6" ",17
3,3" &#
3,+17 1&
3,7" "11
3,&+" ""#
#,1& "37
#,##0 "+1
-1,1&&.
1,0+
1,1#0
1,"0
1,"1
1,3+
-1,1&&.
1,0+
1,1#0
1,"0
1,"1
1,3+
-7,766. 0$70 -+0.
-6,61. 0$6+0 70+
-+,+#1. 0$+&6 60
-#,333. 0$+#7 661
-3,0+". 0$+0" 6#3
-1,6&+. 0$#60 6"+
-1,1&&.
1,0+
1,1#0
1,"0
1,"1
1,3+
-+0.
70+
60
661
6#3
6"+
"0"0 6$00% ",677
1,&33 > 16,71" +# 1&,""&
+,737 "#,&66 3,711 ",""7 1,10+
3$0%
+&$" 1"$7 33$&
60
#,6+1 1,+1# 7,0"6 ",31& #,707 "66 1,#3& "#,70+ "6,1##
"#,#+0 0$#"" 11,0##
otal
1,#3&
60 "#,70+ 10,#36
-3,373. 10,#36 7,063
