Fix issues related to targetDependency, default path, etc. as proposed in PR #12

It looks like PR #12 proposed some needed fixes which are not covered by testing. We really need test updates before we can merge the remaining fixes proposed in #12, in order to verify that it doesn't break at some random point in the future.

Start by reviewing PR #12 and its proposed changes for targetDependency and the default path, then inspect the existing test suite. Add coverage for those fixes and verify that the tests protect against regressions; done means the remaining changes from PR #12 are covered by tests.

Written by the indexing model from the issue text.