Question: new heritage doll case study 1 Guide Questions Compare the business rationale for MMDC and DYOD. 2 . Run a capital budgeting analysis for: a

new heritage doll case study
1Guide Questions
Compare the business rationale for MMDC and DYOD.
2. Run a capital budgeting analysis for:
a. MMDC consider the following factors: R&D, upfront marketing, terminal value
b. DYOD consider the following factors: IT personnel, terminal value, discount rate
Make sure you calculate NPV, IRR, Payback and Profitability Index for both.
Explain if Harris needs any other information to complete her analysis.
3. Which project would you select if there were funding constraints and you could do only one? Why?
4. What would you recommend if there were no capital constraints?
5. What are the key risks involved in both MMDC and DYOD capital budgeting analysis?

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