Pulsar Plc is considering of exporting its products to the Swedish market. It expects to earn an annual accounting profi

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answerhappygod
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Pulsar Plc is considering of exporting its products to the Swedish market. It expects to earn an annual accounting profi

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Pulsar Plc is considering of exporting its products to theSwedish market. It expects to earn an annual accounting profit of£200m from doing so. It has also the option to begin exporting toIndia, Brasil or South Africa, but it has the production capacityfor only one of the four possible markets (including Sweden). Theexpected annual accounting profit for the above three markets is£250m, £200m, and £150m respectively. On the basis of thisinformation, the economic profit of exporting to Sweden is equalto:
a. -£50m.
b. £0m.
c. £50m.
d. £200m.
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