Marcus works for a gaming company that is developing a new online car racing game. Since

developing new software is expensive, the company takes a loan. What is true regarding this

scenario?

As long as this company develops a fun game, regardless of costs versus returns, the company will

profit.

The returns from this project must cover the costs of operating the project but also the cost of capital

used to finance the project.

Since the finance company pays for the operating expenses, the gaming company only needs the

returns from the project to cover the interest expenses for the loan.

Since this type of business loan is interest$-$free, the returns from this project only need to cover the

gaming company's operating expenses.

Even if this company can't cover all of its costs, it will eventually succeed because the market is strong.