Exhibit 2

Selected Operating Projections for Design Your Own Doll

2010

2011

2012

6,000

Fixed Production Expense (excl depreciation)

1,650

Variable Production Costs

2,250

Revenue
Revenue Growth
Production Costs

Development Costs

435

Depreciation
Total Production Costs

310

435

4,210

Selling, General & Administrative

1,201

1,240

Total Operating Expenses

1,201

435

5,450

(1,201)

(435)

Operating Profit

550

Working Capital Assumptions:

Minimum Cash Balance as % of Sales

3.0%

Days Sales Outstanding

59.2x

Inventory Turnover (prod. cost/ending inv.)

12.2x

Days Payable Outstanding (based on tot. op. exp.)

33.7x

Capital Expenditures

NET WORKING CAPITAL:

MINIMUM CASH REQUIRED
RECEIVABLES
INVENTORY
PAYABLES
TOTAL NET WORKING CAPITAL
CHANGE IN NET WORKING CAPITAL
FREE CASH FLOW:
EBIT (Operating Profit B4 Tax)
TAX @ 40%
Earning After Tax
DEPRECIATION
CHANGE IN NWC
R&D -MARKETING TAX DEDUCTION
CAPITAL EXPENDITURE
CASH FLOW
Project Continuing-Horizon Value
Cash Flow After Horizon Value
CUMULATIVE FREE CASH FLOW
PROJECT WACC

High Risk

4,610

310

2010

2011

2012

0.00

1000.00
(1000.00)

180.00
101.40
345.62
161.86
465.17
534.83

(1201.00)

(435.00)

(1201.00)

(435.00)

(4610.00)
(5811.00)

(1000.00)
480.40
0.00
(954.60)

550.30
(220.12)
330.18
309.70
534.83
174.00
(309.70)
1039.01

(954.60)

1039.01

(5811.00)
25530.54
9%

NET PRESENT VALUE

PROFITABILITY INDEX
INTERNAL RATE OF RETURN
PAYBACK PERIOD

NPV VS DISCOUNT RATE

Rate
NPV
9%
10%
11%
12%
13%
14%
15%
16%
17%
18%
19%
20%

21%
22%

23%
24%

25%
26%

27%
28%

29%
30%

31%
Cash Flow vs TIME
Years
Net Cash Flow
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019

8187.48
2.41
20%
8.49

8187
7050
6015
5072
4214
3430
2715
2061
1463
915
413
48
471
859
1217
1546
1849
2129
2387
2625
2845
3049
3237

10000

8000

6000

4000

2000

0
0.09

0.1

0.11

0.12

0.13

-2000

-4000

4000
5811
6766
5727
5273
5930
4740
3480
2145
730
770

2000

0
2010
-2000

2011

2012

0.14

2020

2360
-4000

-6000

Without Terninal Value

-8000

TOTAL NET WORKING CAPITAL

CHANGE IN NWC
FREE CASH FLOW

-5811

DISCOUNT RATE (K-WACC)

0.09

NET PRESENT VALUE

PROFITABILITY INDEX
INTERNAL RATE OF RETURN
PAYBACK PERIOD

NPV VS DISCOUNT RATE

Rate
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
15%
16%
17%
18%
19%
20%
21%
22%
23%
24%

-754.4894272
0.870161861
7%
8.486650881

$1,025
$520
$58
-$366
-$754
-$1,112
-$1,441
-$1,743
-$2,022
-$2,280
-$2,518
-$2,738
-$2,941
-$3,130
-$3,304
-$3,467
-$3,617
-$3,757
-$3,888
-$4,009

1000 465.1705
-1000 534.8295
-954.6 1039.01

NPV VS DISCOUNT RATE

Rate
NPV Project 1
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
15%
16%
17%
18%
19%
20%
21%
22%
23%
24%

NPV Project 2
1025
520
58
-366
-754
-1112
-1441
-1743
-2022
-2280
-2518
-2738
-2941
-3130
-3304
-3467
-3617
-3757
-3888
-4009

2327
1998
1695
1415
1155
915
692
485
292
113
-54
-210
-355
-491
-619
-738
-850
-955
-1054
-1147

4000
3000
2000
1000

-1000
-2000
-3000
-4000
-5000
-6000

2013

2014

2015

2016

2017

2018

2019

2020

14,360

20,222

21,435

22,721

24,084

25,529

27,061

28,685

139.3%

40.8%

6.0%

6.0%

6.0%

6.0%

6.0%

6.0%

1,683

1,717

1,751

1,786

1,822

1,858

1,895

1,933

7,651

11,427

12,182

12,983

13,833

14,736

15,694

16,712

310

310

436

462

490

520

551

584

9,644

13,454

14,369

15,231

16,145

17,113

18,140

19,229

2,922

4,044

4,287

4,544

4,817

5,106

5,412

5,737

12,566

17,498

18,656

19,775

20,962

22,219

23,553

24,966

1,794

2,724

2,779

2,946

3,123

3,310

3,509

3,719

3.0%

3.0%

3.0%

3.0%

3.0%

3.0%

3.0%

3.0%

59.2x

59.2x

59.2x

59.2x

59.2x

59.2x

59.2x

59.2x

12.3x

12.6x

12.7x

12.7x

12.7x

12.7x

12.7x

12.7x

33.8x

33.9x

33.9x

33.9x

33.9x

33.9x

33.9x

33.9x

310

2,192

826

875

928

983

1,043

1,105

2013

2014

2015

2016

2017

2018

2019

2020

430.80
242.69
785.96
371.77
1087.68
(622.51)

811.83
457.34
1426.12
693.95
2001.36
(113.29)

860.54
484.78
1511.70
735.58
2121.44
(120.09)

1794.30 2723.70 2779.20 2945.80 3122.60 3310.10 3508.56

(717.72) (1089.48) (1111.68) (1178.32) (1249.04) (1324.04) (1403.42)
1076.58 1634.22 1667.52 1767.48 1873.56 1986.06 2105.14
309.70
309.70
436.20
462.40
490.10
519.50
550.70
(622.51) (410.38)
(87.19)
(95.12) (100.82) (106.87) (113.29)

3719.00
(1487.60)
2231.40
583.80
(120.09)

(309.70) (2191.50)
454.07
(657.96)

(1105.00)
1590.11
23170.24
24760.36

454.07

606.65
341.75
1065.21
515.55
1498.06
(410.38)

(657.96)

643.04
362.26
1129.61
549.66
1585.25
(87.19)

681.63
383.99
1197.41
582.65
1680.38
(95.12)

722.53
407.03
1269.25
617.61
1781.20
(100.82)

765.88
431.46
1345.39
654.66
1888.07
(106.87)

(825.70)
1190.83

(875.30)
1259.46

(927.80)
1335.04

(983.40) (1042.50)
1415.29 1500.05

1190.83

1259.46

1335.04

1415.29

1500.05

NPV

0.14

0.15

0.16

0.17

0.18

0.19

0.2

0.21

0.22

0.23

0.24

0.25

0.26

0.27

0.28

0.29

0.3

Net Cash Flow

2013

2014

2015

2016

2017

2018

2019

2020

1087.682 1498.058 1585.253 1680.377 1781.198 1888.068 2001.355

0
-622.511 -410.376 -87.1944 -95.1249 -100.82 -106.87 -113.287 2001.3551
454.0686 -657.956 1190.826 1259.455 1335.04 1415.29 1500.049 3591.4699

NPV
2000
1000
0
0.05 0.06 0.07 0.08 0.09
-1000
-2000
-3000
-4000
-5000

0.1

0.11 0.12 0.13 0.14 0.15 0.16 0.17

Sensitivity Analysis (Without terminal value)

4000
3000
2000
1000
0
0.05
-1000
-2000
-3000
-4000
-5000
-6000

0.06

0.07

0.08

0.09

0.1

0.11

0.12

0.13

0.14

0.15

0.16

0.17

0.18

Rate

NPV

0.3

0.31

9%
10%
11%
12%
13%
14%
15%
16%
17%
18%
19%
20%
21%
22%
23%
24%
25%
26%
27%
28%
29%
30%
31%

NPV
7282.045
6506.988
5800.219
5154.991
4565.283
4025.717
3531.487
3078.287
2662.261
2279.949
1928.244
1604.354
1305.767
1030.218
775.6679
540.275
322.3759
120.467
-66.813
-240.697
-402.302
-552.643
-692.642

8187.478
7049.649
6014.717
5072.432
4213.651
3430.209
2714.812
2060.928
1462.711 10000
914.9173
412.84
-47.7487 8000
-470.651
-859.29
-1216.75 6000
-1545.81
-1848.98
4000
-2128.53
-2386.52
-2624.79
2000
-2845.03
-3048.76
-3237.38
0

0.09
-2000

-4000
2020
Net Cash Flow

0.1

0.11

0.12

0.13

0.14

0.15

0.17 0.18 0.19

0.2

0.21 0.22 0.23 0.24

NPV

t terminal value)

0.18

0.19

0.2

0.21

0.22

0.23

0.24

Project 1
Project 2

Sensitivity Chart

0.15

0.16

0.17

0.18

0.19

0.2

0.21

0.22

0.23

0.24

0.25

0.26

0.27

0.28

0.29

0.3

Project 1
Project 2

0.3

0.31