1. How would you describe HPL and its position within the private label personal care industry?
2. Using the assumptions from the Executive VP of Manufacturing, Robert Gates, estimate the projects FCF. Are the projections realistic? What assumptions would you debate? What do you believe to be a more realistic forecast?
3. Using CFO Sheila Dowling’s projected WACC schedule, what discount rate would you choose? What flaws, if any, are inherent in using WACC as the discount rate?
4. Estimate the project’s NPV. Would you recommend that Tucker Hansson proceed with this investment?
Assignment hint: Make sure you answer questions 2 and 4 in quantitative manner and include in your write-up.