3) Suppose that Arundel purchases the sequel rights to all 99 movies from Exhibit 7 and exercises every option to produce a sequel. Exhibit 7 provides the average cost (at t=3) and average cash inflow (at t=4) for a sequel. What is the NPV at t=0 of producing a sequel, on average? Discuss. Assume a discount rate of 12 percent here and throughout the assignment. 3) Suppose that Arundel purchases the sequel rights to all 99 movies from Exhibit 7 and exercises every option to produce a sequel. Exhibit 7 provides the average cost (at t=3) and average cash inflow (at t=4) for a sequel. What is the NPV at t=0 of producing a sequel, on average? Discuss. Assume a discount rate of 12 percent here and throughout the assignment