Problem 2 An inner-city amateur theatre company, Theatre Mama is planning on performing a new take on two Shakespearean plays, Hamlet and Macbeth at an old Sydney theatre in the inner suburb of Newtown. The producers of the theatre plan on alternating the performances of the two plays for a combined total of 40 weeks with performances on 5 days per week. Actors will need Monday and Tuesday off to rest. Given the size of the theatre (50 seats) and the expected seat-sales rate (average of 70% capacity), the producers think they can charge $65 per ticket at the box office. The plays will cost $55 000 to mount in the first place to cover costs of new seats, costumes and props, and the weekly running costs are expected to be $8 000. Assume for the NPV and IRR calculations that all funds are earned and paid, except the mounting costs, at the end of the 40 weeks. The sets, costumes and props are expected to realise $32 000 at the end of the run. Required a. What are the total ticket sales for the performance? b. What is the PP? c. What is the NPV if the producers can earn 10% elsewhere on their funds ? d. What is the IRR for the venture