You are a venture capitalist evaluating two tech startups, Startup X and Startup Y, for potential investment Startup X is in the artificial intelligence (AI) sector, while Startup Y is in the renewable energy sector Requirements Startup X generated a revenue of $10 million with a net income of $2 million in its first year of operation Startup Y had a revenue of $8 million and a net income of $1 5 million in the same period Compare the return on investment (ROI) of both startups considering their initial funding of $5 million each Discuss which startup appears to offer a better return on investment and the factors influencing your decision

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Question: You are a venture capitalist evaluating two tech startups, Startup X and Startup Y, for potential investment. Startup X is in the artificial intelligence (AI)

You are a venture capitalist evaluating two tech startups, Startup X and Startup Y, for potential investment. Startup X is in the artificial intelligence (AI) sector, while Startup Y is in the renewable energy sector.

Requirements:

Startup X generated a revenue of $10 million with a net income of $2 million in its first year of operation. Startup Y had a revenue of $8 million and a net income of $1.5 million in the same period.
Compare the return on investment (ROI) of both startups considering their initial funding of $5 million each.
Discuss which startup appears to offer a better return on investment and the factors influencing your decision.

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