Question: Alphabet is considering a new artificial intelligence research facility with the following financial details: Initial Investment: $1.5 billion Estimated Annual Revenue: $600 million Operating Costs:

  • Alphabet is considering a new artificial intelligence research facility with the following financial details:
    • Initial Investment: $1.5 billion
    • Estimated Annual Revenue: $600 million
    • Operating Costs: $350 million annually
    • Depreciation Expense: $100 million annually
    • Tax Rate: 20%
  • Requirements:
    1. Calculate the annual net income from the AI research facility.
    2. Prepare a financial projection for five years.
    3. Analyze the impact on Alphabet’s operating profit margin.
    4. Discuss the strategic importance of the AI research facility.
    5. Evaluate the potential risks and ethical considerations.

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