Overview: The final project for this course places you in the role of a financial analyst (“Emily Harris”) for the fictional New Heritage Doll Company. You have been tasked with evaluating the financial and strategic merit of two capital budgeting investment projects. To begin this process, you must clearly understand the project options at hand and be able to discern the key factors that may influence your final decision. Often, firms like the New Heritage Doll Company are faced with similarly lucrative investment opportunities, but they must go through the due diligence of weighing the various advantages and disadvantages. This project will guide you through that process and will encourage you to consider the potential benefits and risks, as you would for any capital budgeting decision.
Prompt: Carefully read the Harvard Business School Case Study about the New Heritage Doll Company. Once you have read the case study, answer the following questions:
• Clearly identify which one of the following two projects appears to be the most promising venture, upon initial review:
o Expansion of the successful “Match My Doll Clothing” line
o Initiating a new “Design Your Own Doll” line
• Offer three distinct and well-articulated reasons for your assessment.
After your journal response has been submitted, you will receive instructor feedback that will guide your work in the upcoming milestone assessments.
Guidelines for Submission: Your journal entry will be submitted in Blackboard. Use the latest APA guidelines for any citations and references. Your capital budgeting case report should be 1-2 pages, double spaced, with 12-pt. Times New Roman font and one-inch margins. (The page total does not include the additional pages needed for a title page, references list, and Excel spreadsheet addendum.) You should use the latest APA guidelines for your citations and reference list.