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Adidas pays a consultant $125,000 to assess whether a specialty Hadely Company is a good company to buy. The Hadely Company is worth $185 million.

Adidas pays a consultant $125,000 to assess whether a specialty Hadely Company is a good company to buy. The Hadely Company is worth $185 million. Starbucks would relocate the Hadely Company to a parcel of land that its currently leasing for $85,000 a year. Adidas estimates that the pastries it sells through this new acquisition would increase coffee sales by $5 million per year, but it would lose $1.8 million per year in merchandise sales due to space limitations. The specialty Hadely Company is expected to generate cash inflows of $12.5 in perpetuity. If Starbucks has a WACC or discount rate of 8.75%, should it buy the bakery

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