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 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