Based on the numbers in the case, is the construction of the plant $($packaging and brewery$)$ in Virginia a good idea? Choose all the answers you think are correct.

Yes, having a local packaging facility may reduce transportation costs.

No to the packaging facility idea; savings of $$2\mathrm{.}50$ per barrel in transportation costs amount to an annual payback of $$6M$ on an investment of $95M,$ or $6\mathrm{.}3\%.$ This is not a significant upside without even considering risks.

Yes, building a local brewery makes sense for a firm moving east, especially when they can find a water source with equally excellent water quality as the one they have in the Rocky Mountains.

No$,$ there is excess capacity in the East; see the example from the case of the Miller plant in Ohio. Why add brewing capacity? It may be better to get it from someone else.