Elite Burger: New Product Launch Case ScenarioDavid Smith is a project manager at Elite Burger. He is managing a project to launch a new vegetarian burger using fresh local ingredients and toppings. Based on the executive team's directions, the project team decided to experiment with ingredients such as black beans, chickpeas, quinoa, and wild rice for creating the new burger. They also decided to introduce a few new and more "exotic" toppings such as guacamole and sun-dried tomatoes.A few months into the project, the culinary team has tested several recipes and narrowed them down to the three burgers that they think work best. The project team is now in the process of setting up a taste test to choose which burger should go on the menu. The product launch team has also been brainstorming marketing and promotional strategies.As the team works on finalizing the recipe and marketing strategies, David receives a change request from the executive team. In addition to testing burgers with fresh ingredients, they want the team to create, and test at least one burger using plant-based meat substitutes.David has also learned of another risk the team is facing. The quality and cost of avocados haven't been consistent in the recipe-testing phase. The supplier has assured him that this is temporary, and they will fix these issues before the project deadline is up.How should David address the scope change and risk?Prompt - answer the following based on information aboveHow should David address the change request from the executive team? Consider how the scope change will affect the project. Describe at least three areas that are impacted. Then, recommend some strategies to manage the scope and explain how implementing these strategies will affect these areas of the project.How should he handle the new risk? Perform a risk analysis and recommend some strategies to mitigate or manage this risk.

Module 3 - CaseCAPITAL BUDGETING AND THE COST OF CAPITALAssignment OverviewBefore starting on this assignment, make sure to thoroughly review the required background materials. Make sure you fully understand both the basic concepts as well as how to calculate payback period, NPV, IRR, and WACC. Submit your answers in a Word document. Make sure to show your work for all quantitative questions and fully explain your answers using references to the background readings for any conceptual questions. Questions 1 and 2 will require Excel. Attach an Excel file to show your computations for Questions 1 and 2. Case AssignmentThe table below gives the initial investment and expected cash flows over the next five years for two different projects. Assume that the industry you are in expects a return of 10%, which you use as the discount rate in net present value (NPV) calculations and as the required rate of return for purposes of deciding on projects. Also, assume that management only wants to invest in projects that pay off within four years.For each project, compute the payback period, NPV, and internal rate of return (IRR). Then explain whether each project should be accepted based on these three criteria.Project AProject BInitial Investment$40,000$28,000YearCash Flows1$10,000$10,0002$10,000$13,0003$10,000$5,0004$10,000$5,0005$10,000$6,000Suppose you are planning on becoming a vendor at the arena where your favorite sports team plays. You are trying to decide between opening up a souvenir stand selling T-shirts, caps, etc., with your sports team’s logo or opening up a hot dog and beer stand. It is more expensive to open up the hot dog and beer stand because you need to purchase a license to serve alcohol and you need to spend money to comply with health department regulations. Revenue from the souvenir stand is likely to be unpredictable because fans of your favorite team tend to want to purchase hats and T-shirts only when the team is winning. Revenue from hot dogs and beer seem to be a little more steady since fans want to eat and drink regardless of whether the team is winning.Below is a table with the initial investment cost of each type of stand and the annual payments you expect over the next five years. The annual payments will be different depending on how well your team does. Therefore, you will estimate how much cash flow you will get depending on whether your team does better than expected (optimistic), the same as the past few years (most likely), and worse than expected (pessimistic). Use a discount rate of 8%.Based on the table below, answer the following items:Calculate the net present value (NPV) for each type of stand under each of the three scenarios. Calculate the range of possible NPV values for each type of stand.Based on your answer to A) above and your own guesses about how well you think your favorite team will do over the next five years, which type of stand would you rather invest in?Souvenir StandHot Dog and Beer StandInitial Investment$100,000$150,000 Annual Cash Inflows (5 Years)Outcome Pessimistic$30,000$50,000 Most likely$50,000$60,000 Optimistic$70,000$70,000Suppose you are a corn farmer in your home state. You have to decide between two projects. One project is to purchase new equipment for your farm that will help boost your profits for the next 10 years. You also find out that you can purchase a large banana farm in Brazil for the same price as the equipment, and at the current market price for bananas you will make a lot more profit than you would from purchasing new corn farming equipment.After asking around, you find out that the standard discount rate for evaluating the NPV of the farming project is 6%. Most farmers in your home state seem to use this rate successfully. However, you don’t know any other banana farmers and you don’t know too much about farming in Brazil, so you have to make a guess on an appropriate discount rate for the Brazilian banana farm. Based on the concepts from the background readings, would you say the Brazilian banana farm will need a lower or higher discount rate? A lot larger or smaller, or only a little?Calculate the following:The cost of equity if the risk-free rate is 2%, the market risk premium is 8%, and the beta for the company is 1.3.The cost of equity if the company paid a dividend of $2 last year and is expected to grow at a constant rate of 7%. The stock price is currently $40.The weighted average cost of capital (WACC) if the company has a total value of $1 million with a market value of its debt at $600,000 and a market value of its equity at $400,000. Its cost of debt is 6% and its cost of equity is 15%. The tax rate it pays is 25%.Suppose you own a chain of dry cleaners and the WACC you’ve been using to make decisions on new purchases of dry cleaning equipment is a steady 9%. Recently, gambling has been made legal in your home town so you decide to expand and open up a casino. Should you use the same WACC to evaluate purchases of casino equipment? Why or why not? What are some alternatives to using the same WACC to make decisions on casino equipment? Explain your reasoning, and make references to concepts from the background readings. Assignment ExpectationsAnswer the assignment questions directly.Stay focused on the precise assignment questions. Do not go off on tangents or devote a lot of space to summarizing general background materials.For computational problems, make sure to show your work and explain your steps.Module 3 - BackgroundCAPITAL BUDGETING AND THE COST OF CAPITALRequired ReadingBegin learning about investment decisions and capital budgeting by reading through the following chapters:Fabozzi, F. J., & Peterson Drake, P. (2009). Chapter 14: Capital budgeting techniques. In Finance: Capital markets, financial management, and investment management. Wiley. Available in the Trident Online Library.Advani, R. (2018). Chapter 8: Cost of capital. In The Wall Street MBA: Your personal crash course in corporate finance (3rd ed.). McGraw-Hill. ISBN:9781260135596. Available in the Skillsoft Books database through the Trident Online Library.Next, view the video that explains Weighted Average Cost of Capital (WACC):BlueBookAcademy.com. (2015, July 17). Learn it FAST: Weighted average cost of capital explained [Video file]. Retrieved from https://www.youtube.com/watch?v=JIvokDfW9AQ&t=48sFinally, check out the following videos that will show you how to make capital budgeting calculations using Excel:Graulich, V. (2012, June 25). How to calculate NPV and IRR [Video file]. Retrieved from https://www.youtube.com/watch?v=kCnwCplibAk&t=230sdanthehokie. (2012, June 28). Using Excel to calculate NPV and IRR [Video file]. Retrieved from https://youtu.be/lWY3abc4hz0

Overview: Based on the readings and your own independent research, this short paper will be used so you can explore the course content deeper and apply key concepts and theories learned in your readings. Prompt: Develop a listing of what you believe are the most important metrics for operations managers. (Hint: Be sure to consider the triple bottom line.) How does each metric support the overall financial performance of the organization? What data would be used to support this metric and how would you ensure that the data are of sufficient quality? How does data analytics support your metrics? Be sure to fully explain your rationale for selecting these metrics. Guidelines for Submission: Considering the concepts learned in this lesson and throughout the course, submit a short paper response to the above prompt. Your paper must be 2–3 pages in length, with double spacing, 12-point Times New Roman font, one-inch margins, and at least three sources cited in APA format.