a. Are sunk costs relevant here? b. What, if any, are the opportunity costs to Metro? c.
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a. Are sunk costs relevant here?
b. What, if any, are the opportunity costs to Metro?
c. In computing the licensor’s cash flows, remember that in addition to the direct costs of implementing an agreement, there are sometimes substantial indirect costs. What are they?
d. How would you apply the licensor’s development costs to this exercise?
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