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A financial services company is considering an investment in a new technology platform for investment management. The company has identified a fintech startup that is

A financial services company is considering an investment in a new technology platform for investment management. The company has identified a fintech startup that is seeking funding at a valuation of $5 million. The company expects to receive a dividend of $200,000 per year over a five-year term and sell its equity stake at a valuation of $10 million. What is the expected total return on investment (ROI) if the financial services company invests $2 million in the fintech startup and sell lS its equity stake at a valuation of $10 million?
a. $2.4 million
b. $3 million
c. $3.6 million
d. $4 million
A company produces two products, Product A and Product B. The company has a limited amount of a key raw material that is required to produce both products. The company can either produce 10,000 units of Product A and 5,000 units of Product B, or produce 7,500 units of Product A and 7,500 units of Product B. The company has received a special order for 2,000 units of Product A at a price of $20 per unit. What is the opportunity cost of producing 2,000 units of Product A for the special order?
a. The revenue that could be earned by selling
2,000 units of Product B
b. The variable cost that could be saved by not producing 2,000 units of Product B
c. The fixed cost that could be saved by not producing 2,000 units of Product B
d. None of the above
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