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Suppose Universal studios purchases the sequential rights to all 99 movies from exhibit 8 and exercises every option to produce a sequel. exhibit 8 provides
Suppose Universal studios purchases the sequential rights to all 99 movies from exhibit 8 and exercises every option to produce a sequel. exhibit 8 provides the average cost at (t= 3) and average cash inflow at (t=4) for a sequel. what is the NPV at T=0 of producing a sequel, on average. explain and assume a discount rate of 12%.
PV AT 4: 21.6M
PV AT 3: 22.6M
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