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36 Listen RCB Automotive is considering the manufacture of a new sedan, which will be named RA 425. Which one of the following facts is
36
Listen RCB Automotive is considering the manufacture of a new sedan, which will be named RA 425. Which one of the following facts is irrelevant to RCB's decision to produce or not produce the sedan? (Choose the best answer) 1) A small percenhege of customers who will buy the RA 425 would have bought another model car from RCB, which has the same profitability. 2) RCB's cost of debt is 8%. 3) RCB's cost of equity is 15%. 4) RCB completed a $5 million market analysis to determine the best strategies for promoting the RA 425. 5) RCB will build a new plant to produce the RA 425 Step by Step Solution
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