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Allison's Dresswear Manufacturers is preparing a strategy for the fall season. One alternative is to expand its traditional ensemble of wool sweaters. A second option

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Allison's 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 and cashmere sweater lines offer the following probability of outcomes and related cash flows. Expand wool Sweaters Line Present Value of Cash Flows Expected Sales Probability from Sales Fantastic $250,000 Moderate 182,000 Low 94,000 Enter Cashmere Sweaters Line Present Value of Cash Flows Probability from Sales $324,000 302,000 The initial cost to expand the wool sweater line is $147,000. To enter the cashmere sweater line, the initial cost in designs, inventory. and equipment is $149,000, a. Calculate net present value if Allison's Dresswear Manufacturers decides to: (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest whole dollar) Net Present Value Expand wool sweaters line Enter cashmere sweaters line

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