Harmonic Hearing Co

  1. Read the case for Harmonic Hearing Co (available in your HBR course pack) and review the Harmonic Hearing Projections (linked) o 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?