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Assume MACROSOFT Is Planning to Develop and Sell a New

Question 26

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,and 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) at least $100,000.
C) at least $300,000.
D) at least $450,000.

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