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Problem 1 3 - 1 9 ( Algo ) Decision tree analysis [ LO 1 3 - 4 ] Jasmine's Dresswear Manufacturers is preparing a

Problem 13-19(Algo) Decision tree analysis [LO13-4]
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[[,Expand Wool,Sweaters Line,Enter Cashmere,Sweaters Line],[Expected Sales,Probability,\table[[Present Value of],[Cash Flows from],[Sales]],Probability,\table[[Present Value of],[Cash Flows from],[Sales]]],[Fantastic,0.2,$279,000,0.2,$340,000
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