Based on the following information of P&G to answer the questions:

1. Determine the amount that the firm invested in capital assets for the most recent year.

2. The firm invested in the capital assets to expand its manufacturing capacity. Assume that these assets have a 10-year life, and that the firm requires a 10% internal rate of return on these assets. What is the amount of cash flows that the firm must earn on this new project?

3. Assume the cost of capital required in the new project is 8%. Calculate the discounted payback period and net present value. Evaluate whether the decision of investing in the project is correct or not.

12 Months Ended Jun 30, 2021 Jun 30, 2020 $ 16,181 $ 4,239 14,352 2,735 512 540 (258) (16) 0 (342) 1309 1,391 ( (369) 135 18,371 13,103 3,013 0 558 (596) 7 0 634 (637) 1.923 (710) 108 17,403 A 1 CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions 2 2 3 Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, 4 OPERATING ACTIVITIES 5 Net Earnings 6 Depreciation, Depletion and Amortization 7 Gain (Loss) on Extinguishment of Debt 8 Share-based Payment Arrangement, Noncash Expense 9 Deferred Income Tax Expense (Benefit) 10 Gain (Loss) on Disposition of Business 11 Goodwill and Indefinite-lived Intangibles Impairment Charges Including Disc Ops 12 Increase (Decrease) in Accounts Receivable 13 Increase (Decrease) in Inventories 14 Increase (Decrease) in Accounts Payable and Accrued Liabilities 15 Increase (Decrease) in Other Operating Assets and Liabilities, Net 16 Other Noncash Expense 17 Net Cash Provided by (Used in) Operating Activities 18 INVESTING ACTIVITIES 19 Payments to Acquire Property, Plant, and Equipment 20 Proceeds from Sale of Productive Assets 21 Payments to Acquire Businesses, Net of Cash Acquired 22 Payments to Acquire Investments 23 Proceeds from Sale, Maturity and Collection of Investments 24 Payments for (Proceeds from) Investments 25 Net Cash Provided by (Used in) Investing Activities 26 FINANCING ACTIVITIES 27 Payments of Dividends 28 Proceeds from (Repayments of) Short-term Debt 29 Proceeds from Issuance of Long-term Debt 30 Repayments of Long-term Debt [1] (1 31 Payments for Repurchase of Common Stock 32 Proceeds From Stock Options Exercised And Other Financing Activities 33 Net Cash Provided by (Used in) Financing Activities Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and 34 Restricted Cash Equivalents Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period 35 Increase (Decrease). Including Exchange Rate Effect 36 Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, 37 Additional Cash Flow Elements and Supplemental Cash Flow 38 Interest Paid, Including Capitalized Interest, Operating and Investing Activities 39 Income Taxes Paid 40 41 (11 Includes early extinguishment of debt costs of $512 in 2021. 42 43 (2.787) 42 134) (55) 0 0 (2,834) (3,073 30 (58) 0 6.151 (5) () 3,045 (8,263 13,333 4,417 (4,987) (11,009 1,644 (21,531) 101 (7,789) 2,345 4,951 (2,447) 17.4051 1,978 (8,367) (139) (5,893) 11,942 10,288 16,181 531 434 $ 3,550 $3,822