• Meta is planning to develop a new virtual reality (VR) social platform with the following financial implications:
  • Development Costs: $1.5 billion
  • Estimated Annual Revenue: $700 million
  • Operating Costs: $400 million annually
  • Depreciation Expense: $100 million annually
  • Tax Rate: 18%

• Requirements:
  1. Calculate the annual net income from the VR platform.
  2. Prepare a five-year financial projection.
  3. Analyze the impact on Meta’s operating profit margin.
  4. Discuss the strategic benefits of the VR platform.
  5. Evaluate the potential market risks and user adoption challenges.