Key Topics: Investment appraisal, financial acceptability, stakeholder conflicts.

Models Covered: Net Present Value (NPV), Internal Rate of Return (IRR), Return on Capital Employed (ROCE).

Description: This case explores an investment proposal to manufacture Product W33, leveraging a fully-automated process. The analysis includes calculating the NPV, IRR, and ROCE to determine the financial viability of the project. Demand forecasts over a four-year product lifecycle and operational cost inflation are integrated into the evaluation. The case also considers potential conflicts between the objectives of PV Co’s stakeholders, such as maximizing profitability versus managing risks associated with noise production.