Megastar Software recently developed new spreadsheet software, Ad-soon, which to
ID: 2592453 • Letter: M
Question
Megastar Software recently developed new spreadsheet software, Ad-soon, which to market by mail through ads in computer magazines. Just prior to introducing Ad-soon, Megastar received an unexpected offer from vision computer company to buy all rights to the software for £4 million cash (information) Question: Briefly describe the extent to which the pound sterling amounts of two apportunity costs described in part 2, are known to management at the time the decision is made to accept or reject vision company's offer. (Please answer in paragraph by critical thinking) Megastar Software recently developed new spreadsheet software, Ad-soon, which to market by mail through ads in computer magazines. Just prior to introducing Ad-soon, Megastar received an unexpected offer from vision computer company to buy all rights to the software for £4 million cash (information) Question: Briefly describe the extent to which the pound sterling amounts of two apportunity costs described in part 2, are known to management at the time the decision is made to accept or reject vision company's offer. (Please answer in paragraph by critical thinking) Megastar Software recently developed new spreadsheet software, Ad-soon, which to market by mail through ads in computer magazines. Just prior to introducing Ad-soon, Megastar received an unexpected offer from vision computer company to buy all rights to the software for £4 million cash (information) Question: Briefly describe the extent to which the pound sterling amounts of two apportunity costs described in part 2, are known to management at the time the decision is made to accept or reject vision company's offer. (Please answer in paragraph by critical thinking)Explanation / Answer
firstly its necessary to understand what is opportunity cost. Opportunity cost is the benefit a person could have received but didnot receive because he has to opt for another course of action.
now in the given case as megastar software is launching its recently developed new spreadsheet software. Before this the megastore software co has rejected vision co offer to sale the software for pound 4 million and continued with its sofware development work.
so the opportunity lost by megasoft is proposal of vision to buy megasoft and the value of opportunity cost is opportunity lost of pound 4 million.