Tandem Bicycles is noticing a decline in sales due to the increase of lower-priced import products from the Far East. The CFO is considering a number of strategies to maintain its market share. The options she sees are the following:

• Price the products more aggressively, resulting in a \($1.3\) million decline in cash flows.

The likelihood that Tandem will lose no cash flows to the imports is 55 percent; there is a 45 percent probability that they will lose only \($550,000\) in cash flows to the imports.

• Hire a lobbyist to convince the regulators that there should be important tariffs placed upon overseas manufacturers of bicycles. This will cost Tandem \($800,000\) and will have a 75 percent success rate, that is, no loss in cash flows to the importers. If the lobbyists do not succeed, Tandem Bicycles will lose \($2\) million in cash flows.

As the assistant to the CFO, which strategy would you recommend to your boss?