Part 1

Reliable source: The Economist. (2017). Jos Cuervo acquires Pendleton Whiskey. Retrieved from https://www.eleconomista.com.mx/empresas/Jose-Cuervo-adquiere-Pendleton-Whisky-20171214-0122.html

Analyze the case presented in the following newspaper article and answer what is requested. If you consider it necessary, investigate more about the case in reliable sources.

Jos Cuervo acquires Pendleton Whiskey

The Mexican Jos Cuervo, the largest tequila producer in the world, mentioned that it reached a definitive agreement to acquire the assets of Pendleton Whiskey from Hood River Distillers, in an operation of 205 million dollars.

"The transaction is expected to close during the first quarter of 2018, subject to the respective regulatory approvals," Cuervo said in a statement to the Mexican stock market.

"The Pendleton Whiskey brand will fill an important strategic position in our portfolio as it adds the fastest growing super premium whiskey to complement our broad selection of international spirits," said Mark Teasdale, president of Prximo Spirits, Cuervo's US subsidiary. quoted in the statement.

Pendleton Whiskey was launched in 2003. Cuervo's shares closed on Wednesday, December 13, 2017, with a gain of 0.20%, at 30.71 pesos on the local stock market.

1.-Describe what type of project it is according to its nature, the type of economic activity and its focus. Justify your answer. 2.-Develop the aspects of the financial decision that the investor in the project considered or should have considered according to your point of view. Use the knowledge gained in the module for your answer. 3.-Identify and details each of the stages of the project life cycle.

Part 2

4.-Identify the sources of financing (items that make up the liabilities and stockholders' equity) of the initial disbursement of the project. 5.-Determine the Weighted Average Cost of Capital, assuming that the investment is 50% contribution from the partners and 50% financing, and assuming the cost of the bank credit debt at 35% and the utility offered at 15%. The tax rate is 30%. 6.-Make a cash flow diagram for the project. 7.-Design a table that synthesizes the risks and uncertainties identified in the investment project, considering the following concepts: sensitivity analysis, decision and scenarios. Part 3

8.-Based on the knowledge acquired, answer the following questions: Do you think optimization was considered in the project? Justify your answer, pointing out the consequences. At what point in the project do you realize that the cash flows necessary to be profitable would not be obtained? Was the risk measured? What decision was made to minimize the risk? Do you think it was the right decision? Justify each of your answers. 9.-Provide a report as a conclusion to the case, include the concepts learned in the module (weeks 1 and 2) that you used and applied to interpret your results.