Bulle BuIIe has been supplying a range of carbonated beverages for a very long time. The Bulle owns some of the most recognizable and strongest global brands. Its brands are almost synonymous with 'Iife, fun and carbonated drinks'. Historically, Bulle has been a very profitable business. Bulle currently uses a common capital investment evaluation process for all investment projects in excess of $5 million.A summary of key criteria includes: 0 Projects must generate a positive net present value (NPV) over the life of the VaIentina Bubble is one of Bulle's senior executives. Valentina's team is proposing a major investment in the orange juice industry. Valentina has blueprints for an orangejuice factory and bottling facility in the township of Mundubbera, Queensland, where there is an ample supply of oranges. The region has experienced relatively high levels of unemployment in recent years and the new plant will generate more than 500 newjobs. In recent years, amid growing concerns about the negative impact of sugar in general and carbonated drinks in particular, people in some markets have been drinking less carbonated drinks and Bulle's sales volumes in these markets have been falling gradually and consistentlyfor more than a decade. Valentina and her management team are hoping that their proposed investment is the first of many, marking a shift away from Bulle's heavy reliance on carbonated drinks toward a more diversified product portfolio. Thejuice industry is highly competitive and there are significant barriers to entry. However, the project will enable link the Bulle brand with healthier, natural beverages and will develop a positive reputation with fruit suppliers. This project will represent Bulle debut in the fruit juice industry and pave the way for many similar investments in the long-term. The project requires significant capital expenditure and Valentina is frustrated by the company's investment decision making processes. She believes the current NPV criterion makes it difficult to pursue strategic investments like the orange juice project; particularly when competing with other projects for limited funds. Valentina believes the investment is a good strategic move. It is in-line with the company's growth strategy and opens up opportunities for future expansion. A summary of the project's details is provided in Table 1. Tobie 1: Proposed Orange Juice Investment 56-2 million Average ROI over 5 years ROI in year 1 Average ROI over first three years Payback period 5 years and 6 months Valentina has been a senior executive with Bulle for 12 years. In general, strategic investments that she has championed in the past have performed better than expected. The CEO trusts her business acumen and has asked her to develop an alternative model for evaluating strategic investments for consideration to be used across the organisation. Valentina has been working with staff from the accounting and finance function on the development of the new model. First, a set of criteria was developed to guide the development of the model: 1. The model needs to be applicable across the organization, capable of capturing the specifics of different kinds of capital investments; 2. The model needs to include both financial and non-financial criteria and result in a weighted index for comparison purposes; 3. Non-financial criteria need to be able to be quantified; and 4. The number of non-financial factors would be limited to three. The accounting and finance staff have decided that the model would be a weighted index of net present value, payback period and three other factors. A. Outline a strategic Investment evaluation model (SIEM) that Valentina could present to the CEO. Your SIEM must comply with the criteria provided by the accounting and finance staff. Are you able to present this in the form of a table? (6 marks) B. Use the orange juice investment proposed by Valentina's team, to demonstrate how your SIEM could facilitate better strategic investment decisions. (6 marks) C. Outline TWO problems associated with fully quantified models like the SI EM you have developed