Hansson Private label case questions.

BEFORE Case Discussion on Hansson Private Label
Please write up a case report with your analysis of the following issues:
1. How would you describe HPL and its position within the private label personal care industry?
2. Using assumptions made by Executive VP of Manufacturing, Robert Gates, estimate the project’s FCFs. Are Gates’ projections realistic? If not, what changes might you incorporate?
3. Using CFO Sheila Dowling’s projected WACC schedule, what discount rate would you choose? What flaws, if any, might be inherent in using the WACC as the discount rate?
4. Estimate the project’s NPV. Would you recommend that Tucker Hansson proceed with the investment? You may use sensitivity analysis, breakeven
analysis or scenario analysis to help you make the decision.
To compute incremental cash flows, you might find the following information helpful:
Days Payable Outstanding = Ending Accounts Payables/(Operating Expenses/360 Days)
Days Sales Outstanding = Ending Accounts Receivables/(Sales/360 Days)
Days Sales Inventory = Ending Inventory/(Sales/360 Days)
Assuming Inventory and equipment will be worthless when project ends.
Report format:
No cover page!!!
Times New Roman, font size 12, minimum 1.5 line spacing, with margins of at least one inch.
All exhibits and tables should be professionally labeled and easily readable.