Analysis
Capital Budgeting for a Munich D2C Cosmetics Expansion
Overview
What this challenge is about.
Your task is to build a discounted cash flow model comparing the two expansion strategies over a 5-year horizon. You must estimate initial investment, projected revenues, operating costs, and terminal value. Assume a WACC of 12% and a tax rate of 30%. Success means providing a clear recommendation with supporting calculations, sensitivity analysis on key assumptions (e.g., market share, growth rate), and a discussion of qualitative factors like brand risk and operational complexity.
The Brief
What you'll do, and what you'll demonstrate.
Should GlowBerlin pursue a gradual online-only expansion into France or a full-scale entry with a pop-up store, and under what conditions does each option create more value?
Earning criteria — what you'll demonstrate
- Apply time value of money concepts to evaluate investment alternatives
- Calculate NPV and IRR for real-world capital budgeting decisions
- Perform sensitivity analysis to assess risk and uncertainty
- Integrate qualitative factors into financial decision-making
Program Fit
Where this fits in your program.
Sharpens the same skills your degree expects you to demonstrate.
Skills
Skills you'll demonstrate.
Each one shows up on your verified credential.
Careers
Roles this prepares you for.
Real titles. Real skill bridges. Pick the one closest to your trajectory.
Career mappings coming soon.