Suppose that Disney is considering one more Toy Story movie. The company is not confident in box office sales, but they do believe that the file will create merchandising opportunities (DVDs, toys, clothes...etc). Their early analysis believes the move will have an NPV of -$37.00 million if you only look at ticket sales in the theater. However, they also believe that the movie will create sales of $73.00 million per year in merchandise. The merchandise sales will decline each year by 23.00% in perpetuity. Let's assume that after-tax operating margin on these sales is 13.00%, and that Disney has a cost of capital at 9.00%. Let's value this as a perpetuity. The merchandise sales will continue indefinitely, BUT the sales will decrease each year. What is the net NPV for creating the movie? (answer in terms of millions, so 1,000,000 would be 1.00) Submit Answer format: Currency: Round to: 2 decimal places. You are the owner of a small bar, The World, and you are considering opening a bakery in a vacant area in the back of the store. You estimate that it will cost you $51,929.00 to set up the bakery and that you will generate $10,632.00 in after-tax cash flows in for the life of the store (which is expected to be 10 years.) The one concern you have is that you have limited parking; by opening the bakery you run the risk of not having enough parking for customers who enjoy your bar. You estimate that the lost sales would amount to $4,337.00 per year and that your after-tax operating margin on sales at the bar is 50.00%. If your discount rate is 14.00%, what is the NPV of opening the bakery? Submit Answer format: Currency: Round to: 2 decimal places