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You're the CEO of a traditional book publisher. Your product development manager comes to you with an idea for an e-book investment that would require

You're the CEO of a traditional book publisher. Your product development manager comes to you with an idea for an e-book investment that would require $1 million in upfront capital but would return $5 million in profits within three years based on unit sales of 10 million e-books. Half the increase in e-book copies sold would come at the expense of your current print copies, where you earn one dollar in profits for each print copy sold. Should you invest? Yes No

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