We are using imits Art as the organization. Here is their website: https://www.imitsart.com/ Identify an organization that you are familiar with. Answer the following questions: Who is responsible for ODA? Of the various ODA methods discussed, which ones did they demonstrate supporting? Was learning to use the IT systems to support critical organizational processes demonstrated? Do you think they are aware of factors that inhibit learning of processes? If so, what are they doing to address it? If not, what would you recommend to address these shortfalls? Blau, G., Andersson, L., Davis, K., Daymont, T, Hochner, A., Koziara, K., ... Holladay, B. (2008). The relation between employee organizational and professional development activities. Journal of Vocational Behavior, 72(1), 123-142. Focus on Paragraphs 1.1 and 2.2.1 and 2.2.2. Ashforth, B., & Mael, F. (1989). Social identity theory and the organization. Academy of Management Review, 14(1), 20-39. Focus on the material starting on page 24. Clifford, J., & Thorpe, S. (2007). More ways than one... exploring the use of different learning methods in organizations. Industrial and Commercial Training, 39(5), 267. Focus on the four broad learning categories starting at the bottom of page 268. Ng, T. W. H., Butts, M. M., Vandenberg, R. J., DeJoy, D. M., & Wilson, M. G., (2006). Effects of management communication, opportunity for learning, and work schedule flexibility. Read Paragraph 2.2. Orpen, C., (1997). The effects of formal mentoring on employee work motivation, organizational commitment and job performance. The Learning Organization, 4(2), 53. Focus on the introduction. Alderfer, C. P., & Smith, K. (1982). Studying intergroup relations embedded in organizations. Administrative Science Quarterly, 27(1), 35-65. Read the section titled “Groups in Organizations” on page 38 and stop at the end of the five intergroup relations phenomena at the top of page 40.

CASE SUMMARYPilgrim Coffee Inc. is a successful chain of coffee shops that offers handcrafted coffee and espresso drinks using outsourced coffee beans. In their quest to deliver the best cup of coffee around, top management has learned a lot about coffee beans from around the world and are considering the task of roasting their own coffee beans in house at their flagship cafe. The managers believe they can wholesale their roasted coffee beans to other coffee shops (both local and afar) and offer their packaged beans to customers in-house as well as use the beans for their own drink creations. The COO is worried about the potentially high costs involved and would like to use your finance knowledge to evaluate the new venture and to address management's concerns.CASE OVERVIEWThe main equipment required is a commercial coffee bean roaster. Management has their eyes set on a vintage commercial roasting machine which costs $180,000. The shipping and installation cost of the machine is $40,000. The roasting machine will be depreciated under the MACRS system using the applicable depreciation rates which are 33%, 45%, 15%, and 7% respectively. Production is estimated to last for three years, and the company will exit the market before intense competition sets in and erodes profits. The market value of the coffee bean roaster is expected to be $120,000 after three years. Net working capital of $5,000 is required at the start, which will be recovered at the end of the project. The coffee beans will be packaged in 12 oz. containers that sell for $22.00 each. The company expects to sell 20,000 units per year; cost of goods sold is expected to total 70% of dollar sales.Weighted Average Cost of Capital (WACC):Pilgrim's common stock is currently listed at $45 per share; new preferred stock sells for $50 per share and pays a dividend of $2.50. Last year, the company paid dividends of $1.50 per share for common stock, which is expected to grow at a constant rate of 10%. The local bank is willing to finance the project at 12.5% annual interest. The company's marginal tax rate is 35%, and the optimum target capital structure is:Common equity 50%Preferred 20%Debt 30%Your main task is to compute and evaluate the cash flows using capital budgeting techniques, analyze the results, and present your recommendations whether the company should take on the project.QUESTIONSTo help in the analysis, answer all the following questions as an accompaniment to your report to the owners. Present the analysis in one Excel file with the data, computations, formulas, and solutions. It is preferred that the Excel file be embedded inside the WORD document.What is the total investment amount at the start of the project (i.e., year zero cash flow)?Prepare a depreciation schedule to show the amount of depreciation for each year.What is the after-tax salvage value of the equipment?What is the projected net income and Operating Cash Flows (OCF) for the three years?Complete an income statement for each year.What are the Free Cash Flows (FCF) generated from the project?Create a projected cash flow scheduleWhat is the Weighted Average Cost of Capital (WACC)?Compute the after-tax cost of debtCompute the cost of common equityCompute the cost of preferred stockCompute the Weighted Average Cost of Capital (WACC)Using a WACC of 15%, apply four capital budgeting techniques to evaluate the project, assuming the Free Cash Flows are as follows: YearsFree Cash Flows0($225,000.00)1$107,725.002$116,125.003$169,000.00The four techniques are NPV, IRR, MIRR, and discounted Payback. Assume the reinvestment rate to be 8% for the MIRR. Also, assume that the business will only accept projects with a payback period of two and half years or less.Which of the four techniques should be selected and why?Present your findings in a report to the CEO with recommendations as to whether the project should be accepted or rejected based on the four criteria. Your analysis should include a discussion of the decision-making rules for each method.