Find expected revenues from sales of the new software


MACROSOFT decided to start developing the new word processor. After six months, the R&D phase is completed (i.e. MACROSOFT has already invested $ 300,000). However, after initial negotiations with its distributors, MACROSOFT revised upward marketing and distribution expenses by $ 150,000 (i.e. total marketing and distribution expenses will amount to $ 300,000). If MACROSOFT's managers are risk-neutral, they should abandon the project if the expected revenues from sales of the new software are:

a) $599,000.
b) $449,000.
c) $299,000.
d) None of the above.

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: Find expected revenues from sales of the new software
Reference No:- TGS052581

Expected delivery within 24 Hours