Allisons Dresswear Manufacturers is preparing a strategy for the fall season. One alternative is to expand its traditional ensemble of wool sweaters. A second option would be to enter the cashmere sweater market with a new line of high-quality designer label products. The marketing department has determined that the wool sweater line offers the following probability of outcomes and related cash flows:

Expected Sales Probability Present Value of Cash Flow from Sales

High .5 $221,000

Moderate .2 $192,000

Low .3 $88,600

The initial cost to expand the wool sweater line is $142,000.

Using a decision tree analysis, what is the NPV of expanding the wool sweater line. Negative amounts should be entered with a minus sign. Positive numbers should be entered without a sign. Do not round intermediate calculations. Round your answers to the nearest whole dollar. Do not enter commas.

If the NPV for the cashmere sweaters is $109,100. Would you choose the wool or cashmere sweaters? Enter wool or cashmere.