1- There are multiple solutions to this problem. Propose and describe three possible solutions.

2-Use a list of strengths and challenges to compare the two alternatives. Pick the best solution and explain why it is the best alternative.

3-Assume your chosen solution is implemented. Define how you would judge its success. Explain what data you would need to collect to determine whether the solution was successful.

Three brothers Adrian, Bertrand, and Cole recently inherited a family shoe plant in Central Florida. The plant has been in the family for several decades but currently faces several issues. The factory is significantly outdated and cannot continue to operate without substantial renovations. Competition has intensified in the past few years with retailers and brand owners increasingly sourcing in countries with lower labor costs. The manufacturing of shoes has notable environmental challenges with both air and water pollution. Despite the condition of the plant, the business recently renewed its license and all the permits required to operate for the next 20 years. Modernizing the factory to improve efficiency and continue operation would require an initial outlay of $12 million and generate net annual cash flows of $2 million for the next 20 years. In addition, the business could spend an extra $2.5 million at Year 0 to mitigate the environmental problems caused by the operation of the factory. The additional spending would not have any direct impact on the ongoing costs of production but could improve annual inflows by $0.35 million a year. The factory is under no legal obligation to adopt the mitigation strategy as it had already secured all its permits. Currently, the unemployment situation in the area is quite dire and continuing the shoe production business would generate 150 to 200 direct good paying jobs. The risk-adjusted weighted average cost of capital (WACC) is 13%. The three brothers are pondering what their best move is. Adrian, the oldest brother, is adamant about preserving the legacy of the family and keeping the family business running. Bertrand who just came from a backpacking trip in the state of Washington remembers how a similar old factory was transformed into a bitcoin mining farm in Wenatchee, WA. Cole, the youngest brother cares deeply about leaving the world a better place than he found it. Three brothers Adrian, Bertrand, and Cole recently inherited a family shoe plant in Central Florida. The plant has been in the family for several decades but currently faces several issues. The factory is significantly outdated and cannot continue to operate without substantial renovations. Competition has intensified in the past few years with retailers and brand owners increasingly sourcing in countries with lower labor costs. The manufacturing of shoes has notable environmental challenges with both air and water pollution. Despite the condition of the plant, the business recently renewed its license and all the permits required to operate for the next 20 years. Modernizing the factory to improve efficiency and continue operation would require an initial outlay of $12 million and generate net annual cash flows of $2 million for the next 20 years. In addition, the business could spend an extra $2.5 million at Year 0 to mitigate the environmental problems caused by the operation of the factory. The additional spending would not have any direct impact on the ongoing costs of production but could improve annual inflows by $0.35 million a year. The factory is under no legal obligation to adopt the mitigation strategy as it had already secured all its permits. Currently, the unemployment situation in the area is quite dire and continuing the shoe production business would generate 150 to 200 direct good paying jobs. The risk-adjusted weighted average cost of capital (WACC) is 13%. The three brothers are pondering what their best move is. Adrian, the oldest brother, is adamant about preserving the legacy of the family and keeping the family business running. Bertrand who just came from a backpacking trip in the state of Washington remembers how a similar old factory was transformed into a bitcoin mining farm in Wenatchee, WA. Cole, the youngest brother cares deeply about leaving the world a better place than he found it