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McFriendly Software recently developed new spreadsheet software, Easy-Calc, which it intends to market by mail through a...

McFriendly Software recently developed new spreadsheet software, Easy-Calc, which it intends to market by mail through ads in computer magazines. Just prior to introducing Easy-Calc, McFriendly receives an unexpected offer from Jupiter Computer to buy all rights to the software for $10 million cash.

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  1. Is the $10 million offer “relevant” financial information? Please explain.

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Relevant financial information refer to those revenue and benefits that would differ among alternatives.

Opportunity costs therefore are relevant to decision making.

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