2) Estimate the per-film value of a portfolio of sequel rights such as Arundel proposes to buy. There are several ways to approach this problem, all of which require some part of the dataset in Exhibits 6-9. You may find it helpful to consult the Appendix, which explains how the figures were prepared. a. What if you value all of the sequels using the standard DCF approach? 4. By calculating NPV from hypothetical sequel cash flows, we will be able to identify positive NPV and decide to accept or reject studios portfolios. b. What if you only exercise the right to make a sequel for successful first movies? Which rights would you exercise? 5. It is obviously that we would exercise our right to make a sequel after foreseen success in the first movie. We would: 1. Make movie by ourselves 2. Let studio to make for some profit margin 3. Sell for highest bit