Question

Assume MACROSOFT is planning to develop and sell a new word processor. It estimates that R&D expenses will amount to $300,000 for this new software, while it will have to invest an additional $150,000 to advertise and distribute the new product. If MACROSOFT's managers are risk-neutral, they will undertake this project if the expected revenues from the sales of the new software are:

A. at least $150,000.
B. No return is necessary in the short term.
C. at least $300,000.
D. at least $450,000.

Answer 1

The answer is D.at least $450,000.

Step-by-step explanation:

$300,000+$150,000=$450,000.