Executive Summary

This report is a Finance Corporate Case Study for the shareholders and CEO. The report aims to discuss some important aspects which the investor should consider when they are going to invest a project. And also this report will also give some advice about how to evaluate a worthy investment project. The factors the investor should concentrate on are: net present value, the budget constraints and the riskiness etc.

Introduction

In this report, the author will give some advices for both the shareholders and the CEO decide to invest a new project. There is a study of finance corporate case will be given to the shareholders and CEO. This study is mainly about some statistics and advices of the next year investment plan of the New Heritage Doll Company. And the author is going to give the shareholders and CEO a better explains of this case study. By reading this report, they will see some more detail information about what this project is and how it will operate in the future. In this article, the author will show the shareholders and CEO of how to use net present value as a criterion to make more benefit for the New Heritage Doll Company. And other factors like riskiness and agency problem also will affect the decision of the investment project.

As a business learner, it is necessary for the shareholders and CEO to know that the interest is always the most important factor for the investors to pursuit and decide whether this new project is suitable for them to invest. Before we decide to invest a new project, we need to some statistics which can make us believe that this new project is worthy investing. In the following part, this paper will give some important factors which affect the investor to decide.

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