[SOLVED] Instruction for FIN6104 Case 1 SQL

Instruction for FIN6104 Case 1

Please read the case and answer the following questions to the best of your ability. As a team, you should submit one report for this case study. For the entire course, there will be three case studies in total  and hence  three  report  submissions.  In  the  end  of the  semester,  your  team will  deliver  a presentation based on only one of the cases. (We will decide case allocations in due time.)

Case Information

Title: New Heritage Doll Company: Capital Budgeting

Abstract: A manufacturer and retailer of specialty doll products must decide which of two projects to fund. The decision requires the student to compute cash flows for the 2 projects, discount values to the present and compare and contrast different project performance measures.

Questions

Please  keep  in  mind  that  there  are  oftentimes  multiple  “correct”  answers,  depending  on  the assumptions you make. You need to justify your answers and assumptions. Please note that your report or presentation should not be structured in a simple manner to just answer these questions one by one. Instead, you should attempt to make a self-sufficient report (or presentation) in the sense that a reader (or audience)—who has not seen the case or this instruction—will be able to follow your report  (or  presentation)  seamlessly.  For  example,  you  will  probably  need  a  clear  and  concise introduction to help readers quickly understand the goal of this report; you will probably want to make sure the paragraphs are logically linked. Furthermore, the scope of your project should not be limited by these questions; feel free to include additional discussions on other issues that you find interesting pertaining to the case.

1) What industry is this case focusing on?

2) What was level of total industry sales in 2008, and what was the expected annual growth rate of sales?

3) What are the 3 main operating divisions of the company? Why would production be the most asset- intensive division?

4) What are the two projects that are being evaluated, and what are the unique features of each project?

5) What’s at stake for Emily Harris? Can intuition alone tell you which project is a better investment? Why or why not?

6) Let’s focus on the “Match My Doll Clothing Line Expansion” Project. For the years 2010 to 2020:

a. What is the expected EBIT?

b. What is the expected depreciation expense?

c. What are the components of NWC? What is the level of NWC each year? What is the change in NWC from one year to the next?

d. How much does the firm pay in taxes each year?  e. What capital expenditures are incurred each year?

f. What is the terminal value of the cash flows in 2020 (to determine this, you have to specify/justify your choice of growth rate and discount rate)?

g. What is the NPV of the project? What is the project’sIRR?What is the project’s Payback Period?

7) Please redo question 6 (parts a-g) for the “Design Your Own Doll” project.

Report Submission

You should submit the following files on Blackboard BEFORE November 8, 2023 (Friday), 23:59. Please delegate the job of submitting to only one group member (i.e., each team should submit only once).

1) A PDF file that includes the body of your report and all necessary exhibits (such as tables or figures) to support the report. Your report should not exceed 3 pages (not including exhibits). The page limit is intended to force you to communicate succinctly and clearly; do not interpret it as suggesting that this project requires little work. The report should be clear, concise, but with sufficient detail such that it can be critiqued. You should include a cover page with your team number and all members names.

2) An Excel file that contains your models, detailed analysis, and other supporting data if any. Make the first worksheet (tab) of this file a cover page that includes your team number and all members names. The structure of this Excel file must be user friendly and please include necessary notes to explain what you have done.

Name the files using the following format such as “FM_Group_1.pdf” or  “PT_Group_1.xlsx.”

Presentation

Your presentation will be 20 minutes. Please make sure it will not exceed 20 minutes. All group members must participate in the presentation and be prepared to answer questions (including but not restricted to questions about the business, industry, and your model).

Grade

The entire group project (3 reports + 1 presentation) will count 30% of your final grade.

For each report, a full mark of 5 points will be determined based on the overall quality of the report (including the  main  body,  exhibits,  and  Excel  models).  For  the  presentation, 10  points will  be determined based on the overall quality of your group’s performance. Lastly, we will have 5 points from peer evaluations to disincentivize free-riders: your contribution to this group project will be evaluated by each of your team members anonymously, on a basis of 5 points, and your peer evaluation score will be the average score.