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Only final answer please Wardrobe Clothing Manufacturers is preparing a strategy for the fall season. One strategy is to go to a highly Imaginative, new,
Only final answer please
Wardrobe Clothing Manufacturers is preparing a strategy for the fall season. One strategy is to go to a highly Imaginative, new, four- gold-button sports coat. The all-wool product would be available for males and females. A second option would be to produce a traditional blue blazer line. The marketing research department has determined that the four-gold-button and traditional blue blazer lines offer the following probabilitles of outcomes and related cash flows: Sex Coat Blue Blazer Present value Present value of cash flow of cash flow Expected sales Probability from sales Probability from sales Fantastic $250,000 $394, 000 Moderate 0.5 165,000 263, 000 Dismal 89, 300 0.5 0 The Initial cost to get into the new coat line is $137.000 in designs, equipment, and Inventory. To enter the blue blazer line, the initial cost in designs, Inventory, and equipment is $131,000. a. Calculate Net present value. (Negative answers should be indicated by a minus sign.) Enter Sex Coat Market Enter Blazer Market Net present value $ $Step by Step Solution
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