The following excel document is filled out with the correct information. Re create it calculating what needs to be calculated with the formulas shown. It should look the same or very similar.

THE PROCTER AND GAMBLE COMPANY: CREST WHITESTRIPS ADVANCED SEAL Discounted Cash Flow Valuation Assumptions Advanced Seal Premium Product Basic Product Per unit revenue and costs Revenue COGS Gross profit Cannibalization rate $22 $12 $10 45.00% $18 $7 $11 50% $13 $6 $6 15% Year 0 Volume Adv Seal Premium Basic Incremental Year 1 2000 -1,000 -300 700 Year 2 2000 -1,000 -300 700 Year 3 2000 -1,000 -300 700 Year 4 2000 -1,000 -300 700 SG&A expenses Advertising (Adv Seal) Foregone advertising (Prem + Basic) 1,000 6,000 4,000 1,000 6,000 4,000 1,000 6,000 4,000 1,000 6,000 4,000 Capital investment Startup costs 4,000 1,500 1,500 Startup costs Depreciation schedule Net working capital turnover Tax rate Discount rate 20.0% 9.0 40% 8% 32.0% 9.0 40% 8% 19.2% 9.0 40% 8% 11.5% 9.0 40% 8% 40% 8% Revenve Adv Seal Premium-Basic Incremental revenue 44,000 -21,900 22,100 44,000 -21,900 22,100 44,000 -21,900 22,100 44,000 -21,900 22,100 Gross profit Adv Seal Premium-Basic Incremental gross profit 20,000 -13.100 6,900 20,000 -13.100 6,900 20,000 -13.100 6,900 20,000 -13.100 6,900 1,500 Incremental advertising exp SG&A expenses Depreciation Incremental EBIT Taxes NOPAT 2,000 1,000 800 3,100 1.240 1,860 -1,500 -600 -900 2,000 1,000 1.280 2,620 1.048 1,572 2,000 1,000 768 3,132 1.253 1,879 2,000 1,000 460 3,439 1.376 2,064 Net working capital Net PP&E 0 4,000 2,456 3,200 2,456 1,920 2,456 1,152 2,456 691 Free Cash Flow NOPAT +Depreciation -900 1,860 800 1,572 1.280 1.879 768 2,064 460 -900 1,860 800 1,572 1,280 1,879 768 2,064 460 Free Cash Flow NOPAT + Depreciation - Capital expenditures - Investment in NWC Free cash flow 4,000 2.456 -7,356 0 2,660 -2.456 4,980 2.852 2,647 NPV 3,314 24.9% IRR THE PROCTER AND GAMBLE COMPANY: CREST WHITESTRIPS ADVANCED SEAL Discounted Cash Flow Valuation Assumptions Advanced Seal Premium Product Basic Product Per unit revenue and costs Revenue COGS Gross profit Cannibalization rate $22 $12 $10 45.00% $18 $7 $11 50% $13 $6 $6 15% Year 0 Volume Adv Seal Premium Basic Incremental Year 1 2000 -1,000 -300 700 Year 2 2000 -1,000 -300 700 Year 3 2000 -1,000 -300 700 Year 4 2000 -1,000 -300 700 SG&A expenses Advertising (Adv Seal) Foregone advertising (Prem + Basic) 1,000 6,000 4,000 1,000 6,000 4,000 1,000 6,000 4,000 1,000 6,000 4,000 Capital investment Startup costs 4,000 1,500 1,500 Startup costs Depreciation schedule Net working capital turnover Tax rate Discount rate 20.0% 9.0 40% 8% 32.0% 9.0 40% 8% 19.2% 9.0 40% 8% 11.5% 9.0 40% 8% 40% 8% Revenve Adv Seal Premium-Basic Incremental revenue 44,000 -21,900 22,100 44,000 -21,900 22,100 44,000 -21,900 22,100 44,000 -21,900 22,100 Gross profit Adv Seal Premium-Basic Incremental gross profit 20,000 -13.100 6,900 20,000 -13.100 6,900 20,000 -13.100 6,900 20,000 -13.100 6,900 1,500 Incremental advertising exp SG&A expenses Depreciation Incremental EBIT Taxes NOPAT 2,000 1,000 800 3,100 1.240 1,860 -1,500 -600 -900 2,000 1,000 1.280 2,620 1.048 1,572 2,000 1,000 768 3,132 1.253 1,879 2,000 1,000 460 3,439 1.376 2,064 Net working capital Net PP&E 0 4,000 2,456 3,200 2,456 1,920 2,456 1,152 2,456 691 Free Cash Flow NOPAT +Depreciation -900 1,860 800 1,572 1.280 1.879 768 2,064 460 -900 1,860 800 1,572 1,280 1,879 768 2,064 460 Free Cash Flow NOPAT + Depreciation - Capital expenditures - Investment in NWC Free cash flow 4,000 2.456 -7,356 0 2,660 -2.456 4,980 2.852 2,647 NPV 3,314 24.9% IRR