Case 22: Procter & Gamble 1. What is P&G's motivation for the Advanced Scal launch? 2. Does the project appear economically viable? Which strategic proposal do you find most appealing? Build a four-year DCF model to support your recommendation. Year 0 Year 1 Year 2 Year 3 Year 4 Revenue Adv Seal Premium+Basic Incremental revenue Gross profit Adv Seal Premium+Basic Incremental gross profit Incremental advertising exp SG&A expenses Depreciation Incremental EBIT Taxes NOPAT Net working capital Net PP&E Free Cash Flow NOPAT + Depreciation - Capital expenditures - Investment in NWC Free cash flow Discounted value NPV IRR Case 22: Procter & Gamble 1. What is P&G's motivation for the Advanced Scal launch? 2. Does the project appear economically viable? Which strategic proposal do you find most appealing? Build a four-year DCF model to support your recommendation. Year 0 Year 1 Year 2 Year 3 Year 4 Revenue Adv Seal Premium+Basic Incremental revenue Gross profit Adv Seal Premium+Basic Incremental gross profit Incremental advertising exp SG&A expenses Depreciation Incremental EBIT Taxes NOPAT Net working capital Net PP&E Free Cash Flow NOPAT + Depreciation - Capital expenditures - Investment in NWC Free cash flow Discounted value NPV IRR