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Should nadal enter the foreign market

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Question - 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. Should Nadal enter the foreign market? Why?

Reference no: EM133147854

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