John owns an ice cream and frozen treat restaurant and is considering adding new menu items. he recently met with the representative of a yogurt company who is trying to convince john to add the frozen yogurt to his menu. john has never offered a yogurt product in the restaurant and has concentrated on ice cream items. the yogurt product would not need a different freezer or dispensing unit, so the investment would be similar to changing flavors of ice cream. however, since he’s never offered yogurt, he’s unsure what the market response will be and how much profit he can achieve with the frozen yogurt. what type of purchasing decision does this represent for john?

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?