An important responsibility for financial managers is to guide corporate strategy. Generally

speaking, this involves allocating the limited resources of the corporation. One of the most

essential skills for a financial manager is to analyze the pros and cons of the various choices the

company can make, called "options", to determine the most profitable path forward for the

organization.

You have been asked to provide consulting advice to Glenorna Coffee, a retail coffee producer

based in India. Your team is asked to analyze the various options available to the company and

provide strategic guidance to the owner of the company.

You must evaluate several financial metrics to consider in your analysis, including return on

investment $($ROI$),$ net present value $($NPV$),$ internal rate of return $($IRR$),$ and payback period.

These financial metrics will serve as the KPIs, and by comparing these metrics, you can better

guide the direction of corporate strategy.

You must deliver a proposal $($Word$/$PDF document$),$ and deliver recommendations to various

stakeholders $($Powerpoint presentation in class$).$ In your analysis, you must consider cost of

capital, capital budgeting decisions, and sensitivity of inputs of your analysis.

Questions to consider:

$1)$ Should Glenorna purchase the coffee plantations?

$2)$ Should Glenorna use some of its plantations to grow specialty coffee?

$3)$ What other stages of the coffee value chain could Glenorna enter into as a business?

$4)$ What final advice do you have for the owner?