Requirements: After reading this case study, please answer the following questions: 1. How do mangers know whether this project is a value-enhancing project to the company? What is the appropriate capital budgeting tool to analyze the benefits of the project? 2. What are the relevant, incremental cash flows for this project? What is the initial outlay? What are the costs and benefits over time? 3. What is the appropriate opportunity cost of capital (hurdle rate) for the project? Should Peter Coors use the company’s weight average cost of capital and why? 4. Should the project be implemented based on quantitative analysis? 5. Would changes of the assumptions about the demand for the ethanol, hourly wages, rack price of ethanol and operational efficiency affect the value of the project? How sensitive are the results to the assumptions made? 6. In addition to the financial analysis, what qualitative factors should be considered prior to making the final decision on the approval of the project? 7. What conclusion can managers make about the perceived tradeoff of doing well and doing good?