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Stuart has been offered $ 1 4 million to star in the lead role of the next three Minions adventure movies. If Stuart takes this
Stuart has been offered $ million to star in the lead role of the next three Minions adventure movies. If Stuart takes this offer, he will have to forgo acting in other Despicable Me movies that would pay him $ million at the end of each of the next three years. Assume Stuart's personal cost of capital is per year. a Calculate the IRR for Stuart's threemovie deal offer using Excel. b Whether Stuart should accept or reject the offer? Briefly explain your answers.
Stuart has been offered $ million to star in the lead role of the next three Minions adventure movies. If Stuart takes this offer, he will have to forgo acting in other Despicable Me movies that would pay him $ million at the end of each of the next three years. Assume Stuart's personal cost of capital is per year.
a Calculate the IRR for Stuart's threemovie deal offer using Excel.
b Whether Stuart should accept or reject the offer? Briefly explain your answers.
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