Hi Aidana,

The case has 3.1 stars out of a possible 5, so I'd say you're certainly not the only one :)

I personally don't think it's a great case either.

1) You have to be careful just jumping into market sizing in a case. Sometimes all they need is for you to estimate volumes or % market share off of provided data.

2) The case does give a full breakdown of FCF in the “Task 2" section. You can see what's calculated there.

3) The NPV that they've done here is crazy and will never happen in a real case. Instead of doing a perpetuity NPV (which assumes either steady cashflows or steadily increasing cashflows), they've done an annuity NPV.

However, you'll never need to do an annuity NPV more than 2-3 years out.