Kelly's corner bakery purchased a lot in oil city six years ago at a cost of $98,700. today, that lot has a market value of $128,900. at the time of the purchase, the company spent $6,500 to level the lot and another $12,000 to install storm drains. the company now wants to build a new facility on the site at an estimated cost of $494,200. what amount should be used as the initial cash flow for this project?

Garrett is an executive vice president at samm hardware. he researches a proposal by a larger company, maximum hardware, to combine the two companies. by analyzing past performance, conducting focus groups, and interviewing maximum employees, garrett concludes that maximum has poor profit margins, sells shoddy merchandise, and treats customers poorly. what actions should garrett and samm hardware take? a. turn down the acquisition offer and prepare to resist a hostile takeover. b. attempt a friendly merger and use managerial hubris to improve results at maximum. c. welcome the acquisition and use knowledge transfer to impart sam hardware's management practices. d. do nothing; the two companies cannot combine without samm hardware's explicit consent.