A company sells goods in a foreign market, and the manager is faced with the problem of choosing a distributor. The manager of the company wants to be prepared for increased competition and plans to expand the current distribution network. The first choice is a long-term contract with a firm with whom the company has done business in the past and whose distribution system reaches 40% of all potential customers. The second option is to sign a one- year contract with a new company. Although a year ago the coverage of the new company reached only 20% of customers, they claim they invested heavily in distribution resources and now expect to be able to reach 60% of customers. The manager is not that optimistic about the new companys claim and gives them about 20% trust. If the new distributor still covers only 20% in year 1, however, the company can switch back to the familiar old distributor. The manager of the company wants to develop two-scenario plans: a 3-year and 5-year planning horizon. Which distributor should the manager choose for each plan? Show your analysis.