Your company currently sells oversized golf clubs. The Board of Directors wants you to look at replacing them with a line of supersized clubs. Which of the following is NOT relevant?
A) A reduction in revenues of $300,000 from terminating the oversized line of clubs.
B) Land you own with a market value of $750,000 that may be used for the project.
C) $200,000 spent on research and development last year on oversized clubs.
D) $350,000 you will pay to Fred Singles to promote your new clubs.
E) $125,000 you will receive by selling the existing production equipment which must be upgraded if you produce the new supersized clubs.
Correct Answer:
Verified
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