G$.$ Repeat the analysis performed in the previous question, but now assume that Hatfield can improve the following inputs: $(1)$ Reduce operating costs $($excluding depreciation$)$ to sales to $89\mathrm{.}4\%$ at a cost of $$40$ million. $(2)$ Reduce inventories$/$sales to $14\%$ at a cost of $$10$ million. $(3)$ Reduce net fixed assets$/$sales to $38\%$ at a cost of $$20$ million. This is the Improve scenario.

$1.$ Should Hatfield implement the improvement plan? How much value would it add to the company?

$2.$ How much can Hatfield pay as a special dividend in the Improve Scenario? What else might Hatfield do with the financing surplus?