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Jasmine'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

Jasmine'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:
\table[[Expected Sales,Expand Wool Sweaters Line,Enter Cashmere Sweaters Line],[Probability,\table[[Present Value],[of Cash Flows],[from Sales]],Probahility,\table[[Present Value],[of Cash Flows]]],[Fantastic,0.5,$196,000,0.2,$389,00
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