(a)[8]
Explain two external benefits and two external costs connected with RW’s factories.
(b)[12]
Using Appendix 3 and the other information, decide whether the following forecasts are likely to prove accurate once the new factory has been built. Do you think RW will achieve its forecast profit? Justify your answer. Revenue forecast $20 million. Cost of sales forecast $6 million. Expenses forecast, including interest paid, $12 million.