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A. Your client, Waiting for Go, Inc., is a television production company. Its one-hour series pilot, L.A. ER, has been picked up by NBC Television
A. Your client, Waiting for Go, Inc., is a television production company. Its one-hour series pilot, "L.A. ER," has been picked up by NBC Television for a 22-episode first season. The production budget is $4,000,000 per episode. NBC will pay a license fee of 70% of the production budget. 1. Calculate the total deficit your client will incur (and need to finance) for the 22-episode first season. 2. Calculate the total deficit that will be incurred if the series is renewed and runs for 4 seasons of 22 episodes per season. Assume an increase in production cost each year of 6%. B. Now assume that Netflix has also offered to pick up the series and will cover the entire production cost plus a 10% profit. Your client wants advice on whether to go with the NBC series order, or the Netflix offer. What advice would you give, and why
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