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Question 5 of 7 0.5/1 Your answer is partially correct. Kokomo Productions is evaluating a film project. The president of Kokomo estimates that the film

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Question 5 of 7 0.5/1 Your answer is partially correct. Kokomo Productions is evaluating a film project. The president of Kokomo estimates that the film will cost $15,000,000 to produce In its first year, the film is expected to generate $16,372,000 in net revenue, after which the film will be released to video. Video is expected to generate $9,534,000 in net revenue in its first year, $2,403,400 in its second year, and $984,600 in its third year. For tax purposes, amortization of the cost of the film will be $9,000,000 in year 1 and $6,000,000 in year 2. The company's tax rate is 40 percent, and the company requires a 13 percentrate of return on its films. Click here to view factor tables What is the net present value of the film project? To simplify, assume that all outlays to produce the film occur at time 0. (Round present value factor calculations to 4 decimal places, eg. 1.2151 and final answer to decimal places, eg 125. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses eg. (451) The net present value $ Should the company produce the film? The company should produce the film, ere to search O DOLL Question 5 of 7 0.5/1 percent, and the company requires a 13 percent rate of return on its films. Click here to view factor tables What is the net present value of the film project? To simplify, assume that all outlays to produce the film occur at time 0. (Round present value factor calculations to 4 decimal places, eg 1.2151 and final answer to decimal places, eg. 125. Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses es (451) The net present value S Should the company produce the film? The company should produce the film. e Textbook and Media Savetor Laswed 1 hour Attempts: 2 of 3 used to search

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