New coat... decisions, decisions

I shrank out of all my coats from last winter. I had this great green peacoat, a posh red peacoat, and a fun pink/brown plaid coat, and none of them fit. So I sold them to my friends - that's one thing about me, never be afraid to make me an offer. I get bored easily and I do love money because then I can get new things. But I digress.

Thanks to an online coupon code from Cindy LouWho (Ravelry link), I was able to score this cute wool-blend jacket from Old Navy for under $40!

 It is a little short, but I'm not exactly the outdoor athletic type so I'm not worried. It has a zipper and toggles, and I like the deep hood. But now, I require new knitwear. I went stash diving and came up with some potentials:

500 yds of farmstand alpaca, plus an already-knit slouchy hat

Cascade 220 - charcoal and white

The ones on the left match perfectly (and I LOVE matching) but the charcoal skein is kind of already purchased for a xmas present. And its not alpaca. The selections on the right don't match perfectly, but they are alpaca. And I have a lot of it, it was a gift from BFF Katie S., so it's pretty special and would see lots of use. Now, which one to choose? Or should I just buy new yarn?

NaKniSweMo Update:
I finished the first sleeve of the Cobblestone Sweater (link to my project page on Ravelry) yesterday morning, and finished the body last night. I joined that sleeve to the body, and started the cuff of the second sleeve. It's coming along!