Mr. Arbit is enthusiastic about this investment idea but Mr. Boring is a little sceptical. This impasse makes them approach a consultant. The consultant makes some observations. Which of the following observations, made by the consultant, might reduce Mr. Arbit’s enthusiasm for the new investment idea?
Explanation:
From the options presented, the alternative which casts the biggest shadow of doubt over the technology investment would be an ideal choice. Option 1 states that investing is only justified if the returns are more than the investment. The passage suggests that the investment if successful will offer an abundant return, but if unsuccessful would cause a substantial loss for the company. Options 2 and 3 support technology investment and thus, indirectly support Mr. Arbit's enthusiasm. Similarly option 4 is pro technology investment and can be eliminated. Option 5 directly supports Mr. Arbit's enthusiasm and invalidates Mr. Boring's scepticism as the technology investment has a certain risk factor. Hence, the correct answer is option 1.
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