Facebook is considering investing in virtual reality (VR) technology for its social media platforms. Fixed R&D costs for VR development are $1.5 billion, with variable marketing costs estimated at $200 million annually. Facebook expects VR technology to generate $1.2 billion in annual revenue.

Requirements:

• Calculate the total R&D and marketing costs for VR technology.
• Determine the ROI and payback period for the VR investment.
• Analyze the potential impact of VR on user engagement and advertising revenue.
• Discuss the strategic implications of integrating VR into Facebook's platform.
• Evaluate the financial implications of VR development on Facebook's income statement.
• Recommend user adoption strategies and content partnerships for VR.