Assume MACROSOFT Is Planning to Develop and Sell a New

Multiple Choice

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.