Do you recommend the launch of Bounty Basic in Germany over a 5-year project horizon?

Your project analysis should include:

A. A Financial evaluation:

a. Determine the optimum promotional strategy under each of the two plans provided and include the information from your chosen strategies in your financial evaluation.

b. Calculate the accounting profit before tax for each of the 5 Years.

c. Evaluate the launch using the Home Currency approach. Clearly set out how you calculated the appropriate exchange rates and WACC used in your analysis.

B. Sensitivity analysis:

P&G is concerned that the COGS is underestimated and would like you to perform a sensitivity analysis should the actual COGS be 60% of revenue received by P&G.

Please perform the sensitivity analysis and interpret your findings in an email to the project team. Your email must form part of your project content and should include a high-level summary as to the:

a. impact on your promotional strategy

b. impact on the NPV of the project

c. strategies that P&G could use to mitigate the risk of uncertainty exposed through your sensitivity analysis

C. Qualitative analysis:

a. Would you deem a 5-year time line to be appropriate for this project?

b. Provide and describe the relevance of six long term (3-5 years from the time of the investment) risk factors that you think could impact the longevity of this project:

i. 2 country risk factors

ii. 2 company risk factors

iii. 2 factors which could impact the success of this product vs competing products