Which of the following statements is true of the risk appetite determination step within the enterprise risk management (erm) process of an organization? determining an organization's risk appetite involves identifying the top risks and assessing risks at the inherent level. determining an organization's risk appetite involves determining the organization's desired overall level of risk taking. determining an organization's risk appetite is the final step in the iterative enterprise risk management process. determining an organization's risk appetite requires input from a cross-functional team to capture all the threats—or risks—to the organization.

Sailcloth & more currently produces boat sails and is considering expanding its operations to include awnings for homes and travel trailers. the company owns land beside its current manufacturing facility that could be used for the expansion. the company bought this land 5 years ago at a cost of $319,000. at the time of purchase, the company paid $24,000 to level out the land so it would be suitable for future use. today, the land is valued at $295,000. the company has some unused equipment that it currently owns valued at $38,000. this equipment could be used for producing awnings if $12,000 is spent for equipment modifications. other equipment costing $490,000 will also be required. what is the amount of the initial cash flow for this expansion project?