Your firm, Blenden Holdings, is proposing to purchase Alum Co. for $36 million. Blenden sees considerable upside to Alums FCF if Blenden can implement a higher level of productivity and sales. In fact, the valuation for the growth case is $42 million. While conducting a sensitivity analysis plus a scenario analysis of the growth case for Alum Co. relative to the status quo, you find that minor changes in the cost of capital, revenue growth rate, and the EBITDA multiple for terminal value result in valuations of less that $36 million. You must now go talk with the management team at Blenden and recommend that:

	a.	The deal should be called off because your numbers do not support it.
	b.	Blenden should re-exam its growth plan and further analyze the purchase price relative to the growth plan.
	c.	The deal should close as planned because the base case of the growth plan is in excess of the purchase price.
	d.	There are potential problems with the transaction, but you are optimistic that the management team can overcome them after the deal closes.
	e.	The manager in charge of the acquisition should be terminated.