How should our paper look like? (Total 14-15 pages)
In the initial part of the paper we is going to write an introduction and speak the strategy we take to write the full daily news. (1/2 page)
In the second part of the paper all of us talk about ROIC/Payback period compared to NPV way of project values.
The bottom-line is that NPV method provides definite positive aspects over the various other methods. (2-3 pages)
In the third part we display that we will perform the task valuation in line with the NPV. All of us introduce the three excel sheets and write down thier conclusions with the three stand out sheets. We all talk within the basic assumptions we take to perform the NPV calculations and discuss a final bottom-line.
The bottom-line is that the NPV can be negative and hence this project should not be approved. (2-3 pages)
In the fourth part we have to talk around the difference involving the negative NPV versus the ROIC of 72%. Why is presently there a huge big difference and in which is the issue in the capital budgeting process of HPC? (I believe this is the important message that we have to deliver!! ) (2-3 pages)
In the fifth part of the newspaper we should execute a critical evaluation of the comments by Wickler, Leiter & Nanzen. Everybody is somewhat right in some aspects and we should recognize (a). Who may be right in what aspect and why and (b). That is wrong about what aspect and why. The aspect of contribution margin because performance sign should also be covered here. (2-3 pages)
In the sixth part of the newspaper we summarize that the capital budgeting method should be changed to NPV. (1-2 page)
Excel Sheets inside the appendix:
1 . Production Capabilities Calculations
2 . WACC Computations
3. NPV Calculations