New Heritage Doll Case #$1$

Set forth and compare the business cases for each of the two projections under consideration by Emily Harris. Which do you regard as more compelling? $$

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$2.$ Use the operating projections for each project to compute a net present value $($NPV$)$ for each project. Which project creates more value? $$

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$3.$ Conduct a sensitivity analysis. If the discount rate changes by $1\%,$ how would it change the NPV for both projects? Explain briefly how sensitive the project is for the discount rate change. $$

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$4.$ Compute the internal rate of return $($IRR$),$ payback period, and profitability index for each project. How should these metrics affect Harris$$s deliberations? $$

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$5.$ If you were forced to recommend one project over the other, which should you recommend?$"$