Hale’s TV Productions is considering producing a pilot for a comedy series in the hope of.

Hale’s TV Productions is considering producing a pilot for a comedy series in the hope of
selling it to a major television network. The network may decide to reject the series, but it may
also decide to purchase the rights to the series for either one or two years. At this point in time,
Hale may either produce the pilot and wait for the network’s decision or transfer the rights for the
pilot and series to a competitor for $100,000. Hale’s decision alternatives and profits (in thousands
of dollars) are as follows:

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