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Facebook is evaluating the costs associated with developing a new virtual reality (VR) social platform. The development costs are $800 million, with ongoing content acquisition

Facebook is evaluating the costs associated with developing a new virtual reality (VR) social platform. The development costs are $800 million, with ongoing content acquisition costs of $100 million annually. Facebook anticipates generating $300 million in annual subscription revenue from the VR platform.

Requirements:

  • Outline the development costs and annual content acquisition costs in bullet points.
  • Calculate the total investment and annual operational costs for the VR platform.
  • Determine the break-even subscription base and revenue for the project.
  • Analyze the market potential and user engagement metrics for VR social platforms.
  • Discuss the strategic alignment of VR technology with Facebook's social media ecosystem.
  • Evaluate the financial impact of the VR platform on Facebook's income statement.

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