A friend of yours tells you she has an idea for a new product. She believes that once the prototype is built she can sell the rights to the product for $250,000. The problem is she needs
$20,000 to build the prototype and she only has $5,000. She asks you to invest $15,000 in the idea and she will give you 75% of whatever amount she obtains when she sells the rights. You have the money available but should be reluctant to provide the money. Why?

Question

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The Answer of A friend of yours tells you she has an idea for a new product. She believes that once the prototype is built she can sell the rights to the product for $250,000. The problem is she needs
$20,000 to build the prototype and she only has $5,000. She asks you to invest $15,000 in the idea and she will give you 75% of whatever amount she obtains when she sells the rights. You have the money available but should be reluctant to provide the money. Why?

A Friend of Yours Tells You She Has an Idea