INITIAL EXPENDITURES $ Revenue

Upfront R&D 625 Revenue Growth

Upfront Marketing 625 Production Costs

Investment in Working Capital 800 Fixed Production Expense (excl depreciat
Property, Plant & Equipment 1470 Variable Production Costs
Total 3520 Depreciation

Total Production Costs

Selling, General & Administrative
Total Operating Expenses

Operating Profit

Working Capital
Cash Balance
Days Sales Outstanding
Inventory Turnover (prod. cost/ending inv.
Days Payable Outstanding (based on tot.

NET WORKING CAPITA

CHANGE IN NWC

Capital Expenditures
 NEW HERITAGE DOLL CASE

Match My Doll Clothing

2010 2011 2012 2013 2014 2015

4500 6860 8409 9082 9808

52.40% 22.60% 8% 8%
uction Costs
oduction Expense (excl depreciation) 575 575 587 598 610
Production Costs 2035 3404 4291 4669 5078
152 152 152 152 164

Production Costs 0 2762 4131 5030 5419 5852

General & Administrative 1250 1155 1735 2102 2270 2452
erating Expenses 1250 3917 5866 7132 7689 8304

-1250 583 994 1277 1393 1504

ng Capital
135 206 252 272 294
es Outstanding 730 1,113 1,364 1,473 1,591
y Turnover (prod. cost/ending inv.) 359 498 396 427 461
yable Outstanding (based on tot. op. exp.) 318 484 593 640 691

WORKING CAPITAL 800 906 1,332 1,419 1,532 1,654

-800 106 427 87 113 122

al Expenditures 1470 952 152 152 334 361

 2016 2017 2018 2019 2020

10593 11440 12355 13344 14411

8% 8% 8% 8% 8%

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

318 343 371 400 432

1,718 1,855 2,004 2,164 2,337
498 538 581 627 677
747 806 871 941 1,016

1,787 1,930 2,084 2,251 2,431

133 143 154 167 180

389 421 454 491 530

CALCULATION OF NET PRESENT VALUE -

2010 2011 2012 2013 2014

EBIT(1-t) -750 350 596 766 836
ADD - DEP 0 152 152 152 152
LESS - i) CHANGE IN NWC -800 -106 -427 -87 -113
ii) CAPITAL EXPENDITURES -1470 -952 -152 -152 -334

NET CASH INFLOWS -3020 -556 169 679 541

NET CASH INFLOWS DISCOUNT FACTOR @ 8.40 NET PRESENT VALUE

-3020 1 -3020
-556 0.9225 -513
169 0.851 144
679 0.7851 533
541 0.7242 392
583 0.6681 390
630 0.6163 388
680 0.5686 387
734 0.5245 385
793 0.4839 384
17183 0.4464 7670

NPV 7139.15

INTERNAL RATE OF RETURN (IRR) 23.9749%

PROFITABILITY INDEX (PI) = NPV/INITIAL INVESTMENT

PAYBACK PERIOD

NET CASH INFLOWS CUMULATIVE CASH FLOWS

-3020 -3020
-556 -3576
169 -3407
679 -2728
541 -2187
583 -1604
630 -974
680 -294
734 440
793 1233
17183 18416
SENSITIVITY ANALYSIS WILL BE DISCUSSED IN BRIEF WHILE EXPLAINING THE EXCEL SHEE
 2015 2016 2017 2018 2019 2020
902 974 1052 1135 1227 1324
164 178 192 207 224 242
-122 -133 -143 -154 -167 -180
-361 -389 -421 -454 -491 -530

583 630 680 734 793 856

INTEREST 8.40% CALCULATION OF TERMINAL VALUE (GROWTH RATE 3%)

FUTURE CASH FLOW* (1+g)/(DISCOUNT RATE-g)

₹ 16,327

NPV WITHOUT TERMINAL VALUE = -149

THIS WILL BE DISCUSSED WHILE EXPLAINING THE SHEET CALCULATIONS

2.363955 ASSUMPTION = WE HAVE TAKEN THE INITIAL INVESTMENT AS 3020

IT WILL BE RECOVERED AFTER THIS PERIOD (THE REMAINING AMOUNT TO BE COVERED IS 2285)
AND IN THIS YEAR. WE'RE GETTING 17183, SO DIVIDING IT BY 12, WE WOULD GET AROUND 1432
THEREFORE IT CAN BE SAID THAT THE PAYBACK PERIOD IS ABOUT 9 YEARS & 2 MONTHS
ILE EXPLAINING THE EXCEL SHEET
TH RATE 3%)

THE SHEET CALCULATIONS

L INVESTMENT AS 3020
INITIAL EXPENDITURES 2010 2011 Revenue
Upfront R&D 841 Revenue Growth
Upfront Marketing 360 Production Costs
Investment in Working Capital 1000 Fixed Production Expense (excl depr
Property, Plant & Equipment 4610 Variable Production Costs
Additional Development Cost (IT Personnel) 435 Additional Development Cost (IT Pe
TOTAL 5811 1435 Depreciation
Total Production Costs
Selling, General & Administrative
Total Operating Expenses

Operating Profit

WORKING CAPITAL
Cash Balance
Days Sales Outstanding
Inventory Turnover (prod. cost/endi
Days Payable Outstanding (based on

NET WORKING CAPITAL

CHANGE IN NWC

CAPITAL EXPENDITURE
Capital investement based on perom
 DESIGN YOUR OWN DOLL

2010 2011 2012 2013 2014 2015 2016

0 6000 14360 20222 21435 22721
139.30% 40.80% 6% 6%
ction Costs
duction Expense (excl depreciation) 0 1650 1683 1717 1751 1786
roduction Costs 0 2250 7651 11427 12182 12983
l Development Cost (IT Personnel) 435
0 310 310 310 436 462
duction Costs 435 4210 9644 13454 14369 15231
eneral & Administrative 1201 0 1240 2922 4044 4287 4544
rating Expenses 1201 435 5450 12566 17498 18656 19775

-1201 -435 550 1794 2724 2779 2946

ING CAPITAL
0 0 180 431 607 643 682
s Outstanding 0 973 2329 3280 3477 3685
Turnover (prod. cost/ending inv.) 345 784 1068 1131 1199
able Outstanding (based on tot. op. exp.) 475 1132 1587 1682 1783

KING CAPITAL 1000 1024 2412 3367 3569 3783

-1000 24 1389 955 201 214

AL EXPENDITURE 4610 0 310 310 2192 826 875

vestement based on peromance
Mat Louis is an actually an event that surprised to that moments who allocated to the house
it is based on case study of Doll under the depreciation of working capital Net working capital investemmnt on the perfom
Developing cost day sales understanding Inventory Turnover That expects total production costs That oroveidbv t fge cots
 2017 2018 2019 2020
24084 25529 27061 28685
6% 6% 6% 6%

1822 1858 1895 1933

13833 14736 15694 16712

490 520 551 584

16145 17114 18140 19229
4817 5106 5412 5737
20962 22220 23552 24966

3122 3309 3509 3719

723 766 812 861

3906 4141 4389 4652
1271 1348 1428 1514
1890 2004 2124 2251

4010 4250 4506 4776

227 241 255 270

928 983 1043 1105

vestemmnt on the perfomamnce

That oroveidbv t fge cots if foog
CALCULATION OF NET PRESENT VALUE -

2010 2011 2012 2013

EBIT(1-t) -721 -261 330 1076
ADD - DEP 0 310 310
LESS - i)CHANGE IN NWC -1000 -24 -1389
ii)CAPITAL EXPENDITURE -4610 0 -310 -310

NET CASH INFLOWS -5331 -1261 306 -313

NET CASH INFLOWS DISCOUNT FACTOR @9 NET PRESENT VALUE

-5331 1 -5331
-1261 0.9174 -1156.8414
306 0.8417 257.5602
-313 0.7722 -241.6986
-1203 0.7084 -852.2052
1076 0.6499 699.2924
1141 0.5963 680.3783
1208 0.547 660.776
1281 0.5019 642.9339
1358 0.4604 625.2232
26160 0.4224 11049.984
7034.65

INTERNAL RATE OF RETURN (IRR) 17.8549%

PROFITABLITY INDEX (PI) = NPV/INITIAL INVESTMENT

ASSUMPTION = WE HAVE TAKEN THE INITIAL INVESTMENT AS 5331

PAYBACK PERIOD

NET CASH INFLOWS CUMULATIVE CASH FLOWS

-5331 -5331
-1261 -6592
306 -6286
-313 -6599
-1203 -7802
1076 -6726
1141 -5585
1208 -4377
1281 -3096
1358 -1738
26160 24422
SENSITIVITY ANALYSIS WILL BE DISCUSSED IN BRIEF WHILE EXPLAINING THE E
 2014 2015 2016 2017 2018 2019 2020
1634 1667 1768 1873 1985 2105 2231
310 436 462 490 520 551 584
-955 -201 -214 -227 -241 -255 -270
-2192 -826 -875 -928 -983 -1043 -1105

-1203 1076 1141 1208 1281 1358 1440

INTEREST 9% CALCULATION OF TERMINAL VALUE(GROWTH RATE 3%)

FUTURE CASH FLOW* (1+g)/(DISCOUNT RATE-g)

24720

NPV WITHOUT TERMINAL VALUE= -3407

THIS WILL BE DISCUSSED WHILE EXPLAINING THE SHEET CALCULAT

1.319574

INVESTMENT AS 5331

THE REMAINING AMOUNT TO BE COVERED IS 8984

IT WILL BE COVERED IN THIS PERIOD, SO BY DIVIDING 26160 BY 12, WE WOULD GET 2180
THEREFORE, THE PAYBACK PERIOD WOULD BE AROUND 9 YEARS 5 MONTHS
BRIEF WHILE EXPLAINING THE EXCEL SHEET
WTH RATE 3%)

NG THE SHEET CALCULATIONS