1. Read the case for Harmonic Hearing Co (available in your HBR course pack) and review the Harmonic Hearing Projections (linked)
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o Calculate the IRR on the ownership interest of Harriet Burns and Richard Irvine for the debt financing alternative and the equity financing alternative.
o What is the NPV of their investment for each alternative using the following discount rates: 25%, 35%, and 45%?
o Beyond the results of your quantitative analysis, what other important factors should be considered when selecting the financing alternative? Which financing alternative is the better choice in this situation?