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: Expected Sales Expand Wool Sweaters Line Enter Cashmere Sweaters Line Probability Present Value of Cash Flows from Sales Probability Present Value of Cash Flows from Sales Fantastic 0.3 $ 190,000 0.4 $311,000 Moderate 0.3 188,000 0.1 245,000 Low 0.4 85,600 0.5 0 The initial cost to expand the wool sweater line is $135,000. To enter the cashmere sweater line, the initial cost in designs, inventory, and equipment is $142,000. a. Calculate net present value if, Jasmine's Dresswear Manufacturers decides to: Note: Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest whole dollar.

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: Expected Sales Expand Wool Sweaters Line Enter Cashmere Sweaters Line Probability Present Value of Cash Flows from Sales Probability Present Value of Cash Flows from Sales Fantastic 0.3 $ 190,000 0.4 $311,000 Moderate 0.3 188,000 0.1 245,000 Low 0.4 85,600 0.5 0 The initial cost to expand the wool sweater line is $135,000. To enter the cashmere sweater line, the initial cost in designs, inventory, and equipment is $142,000. a. Calculate net present value if, Jasmine's Dresswear Manufacturers decides to: Note: Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest whole dollar.

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter15: Decision Analysis

Section: Chapter Questions

Problem 2P: Southland Corporation’s decision to produce a new line of recreational products resulted in the need...

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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 Expected Sales Probability Fantastic Moderate Low 0.2 Present Value of Cash Flows from Sales $226,000 184,000 93,300 Expand wool sweaters line Enter cashmere sweaters line Enter Cashmere Sweaters Line Probability 0.3 0.3 0.4 The initial cost to expand the wool sweater line is $155,000. To enter the cashmere sweater line, the initial cost in designs, inventory, and equipment is $173,000. Net Present Value Present Value of Cash Flows from Sales $366,000 327,000 a. Calculate net present value if, Allison's Dresswear Manufacturers decides to: (Negative…
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Please help me with my homeowork!:( Please explain with formulas included. Thank you!:)
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How did they get net cash inflow in this problem? I don't need anything else solved, just need to know how they got the net cash inflow because the text doesn't explain it.
Please give answer for A and B