What was the net gain or loss for the year, Operation Management

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What was the net gain or loss for the year

Problem:

A venture capitalist company had invested in five new businesses during the last year. The results at the end of one year were as follows: Business A: Loss $500,000, Business B: Loss 900,000, Business C: Loss 250,000, Business D: Loss 50,000, Buisness E: Profit 2,500,000.

Required:

Question 1) What did the total losses amount to for the year?

Question 2) What was the net gain or loss for the year?

Question 3) Is it possible that by the end of the second year Business A, B, C, and D might earn a profit?

Solve the given numerical problem and illustrate step by step solution.

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