Your Bid to Set Up the Computer System at Evergreen

question 33

Essay

Your bid to set up the computer system at Evergreen, a small local business, was accepted. Today you found out that the software that Evergreen's systems require just had a price increase, so your bid will need to increase to reflect this change.
-As you plan your message to notify Evergreen of the increase, you consider not telling them the reason for it, as you don't think they need to be bothered with the technical details. Why might this backfire on you? What might you do in your message to soften the bad news?

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Definitions:

Payoff

The return or outcome received from an investment or decision, often used in context of financial transactions and game theory.

Risky Undertaking

An action or project that involves a high degree of uncertainty or danger regarding its outcome or success.

Expected Value

A calculation in probability and statistics that shows what to predict as the outcome on average over many trials.

Investment

The allocation of resources, typically money, with the expectation of generating an income or profit.