1. Bruce Willos is producing a new action movie featuring himself but the female star that was initially hired has decided to quit for unspecified reasons. Without a replacement, financial experts reckon that there is a 1/3 chance that the movie will turn out to be a success generating earnings of about $80million and a 2/3 chance of being a flop, still generating $20 million thanks to Bruce Willos's brand name recognition. Bruce Willos has financed the movie so far out of personal equity but he also had to take some debt and the outstanding face value of this debt stands currently at $60 million. (a) Bruce Willos can hire Catherine Zebra-Bones for about $5 million. Analysts reckon that this would probably increase the chances of success from 1/3 to 2/3. Is the new hire a positive NPV project? Will Bruce do it if he is the one to fork out the money?