Nadal corp. is considering entering a foreign market to sell its lightning tennis racquet. if Nadal enters the market and sells racquets, they would have to incur additional fixed costs of $100,000 and variable costs of $50/racquet. revenues would increase by $150/racquet. Nadal forecasts that sales in the foreign market will be either 700 or 1,500, with corresponding probabilities of 4, and 6, respectively.

a. should Nadal enter the foreign market ? why ?

b. nadal corp. can hire for $8,000 a marketing expert, M.Ghosh from the university of Arizona who will perfectly reveal racquet sales prior to Nadal's decision. should Nadal corp. do this ? show computations.