Hi Nick, how are u?

So us of group 3 we are to present our analysis around the Laurentian Bakeries Case. In our
group we have Angela Rodriguez, Lewis and Fernanda Nunes

To start our analysis let me present the context that we have here:

Laurentian Bakeries intends to expand the company’s frozen pizza plant in Winnipeg,
Manitoba and to evaluate that investment we did financial analysis to recommend if the
company should move on or not with it.

Slide 3

So, before to start our analysis in the case study let me explain what are the key items to keep
in mind when determining the free cash flows for investment analysis.

In an investment analysis we need to keep in mind what is a RELEVANT CASH FLOW. AND
WHAT it IS MEAN: 02 main points:

Only cash flows are relevant, not accounting income and FOCUS ON Incremental cash flow

And which are covered with this 2 main points:

- Be incremental
- Include opportunity costs and effects of project interdependencies
- Include net working capital
- Ignore financing issues
- Ignore sunk costs (we do not need to be concerned with what has been paid in the
past)
- Be after tax
- Take account of depreciation/capital allowances

And after, what are our recommendations for Danielle Knowles.

So, that are our 3 main recommendations to Danielle. And with this we finish our analysus