In year one, the company chose the Match My Doll clothing line and retail expansion in the Northeast projects. These projects had the most appealing financial metrics, with an IRR of 20.69% and 32.33%, payback periods of 9.21 and 6.11 years, and potential income increases of 7.84 and 6.84 respectively. In subsequent years, the company considered more factors than just financials, such as project divisions and trends, to make more diverse and informed decisions from an increasing number of project options each year.

1. D’Agostino, Greenlaw, Le 1
New Heritage Doll Company Simulation
What did you decide in year one?
In year one, we decided to choose the Match My Doll clothing line and the Retail Expansion in
the Northeast. We chose the Match My Doll clothing line because we saw that it’s sales figure
were the most appealing with an IRR of 20.69%, a payback period of 9.21 years, and 7.84
potential increase in net income. We chose the Retail Expansion in the Northeast because they
had an IRR of 32.33%, a payback period of 6.11 years, and a 6.84 potential net income increase.
Out of the five choices available to us, we found that these two options were the best ones to go
with.
How did you rank each project and why?
(INSERT TABLE 1 – YEAR 1 RANKINGS) – Say why we chose it after each table.
(INSERT TABLE 2 – YEAR 2 RANKINGS) – Say why we chose it after each table.
(INSERT TABLE 3 – YEAR 3 RANKINGS) – Say why we chose it after each table.
(INSERT TABLE 4 – YEAR 4 RANKINGS) – Say why we chose it after each table.
(INSERT TABLE 5 – YEAR 5 RANKINGS) – Say why we chose it after each table.
(INSERT TABLE 6 – OUR SELECTION RANKINGS) – Say why we chose it after each table.
How did things change when there is more than one year?
When the simulation changed for every year, new projects kept being added at large numbers.
There were always more projects that we had to decide from, which made the process of
choosing which projects to invest in lengthier. The information that was added every year
continued to build off of the previous year’s information so it was imperative that we looked at
every detail. When more projects and years were added, it became clear that each project was
dependent on each other in regards to maximizing revenues. For example, if Project A was doing

2. D’Agostino, Greenlaw, Le 2
well and Project B wasn’t, there was a good chance that Project A would compensate for Project
B.
Did you take a different strategy than in year 1?
In year one, we only looked at the financial implications of the decisions we made. In years 2-5
we decided to look at every aspect of the project. We began not only looking at the financial
implications, but also looking at the division they were in and how it would diversify the
company. We began to look more at what was popular in the years we were doing and made our
decisions based on all of the aforementioned factors.
What kind of projects did New Heritage have? Characterize them by division and project
attributes; did this impact your selection?
(INSERT TABLE OF ALL PROJECTS THEY HAD LISTED BY DIVISION)
The division and project attributes did not impact our selection in year one, but they began to
play a large role in years 2-5. As stated in the previous answer, we began to look at all factors
concerning the projects and not just the financial implications.