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The CEO of Gameau Cinemas is considering making a movie and must decide between a comedy and a tvrdon't have the production space to make

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The CEO of Gameau Cinemas is considering making a movie and must decide between a comedy and a tvrdon't have the production space to make born. The comedy is expected to cost $20 milon up front (aft - 0). After that, it is expected to make $11 milion in the first year (att 1) and 54 million in each of the following two years (att - 2 and 3). In the fourth year (at 5), it is expected that the movie can be sold into syndication for $2 milion with no further cash flows back to Games Cinemas. The thriller is expected to cost $35 milion up front (at = 0Aer that is expected to make $20 million in the first year of 1) and 54 milion in each of the following four years (att. 2.3.4 and 5). In the sixth year (alt 6), it is expected that the movie can be sold into syndication for $25 million with no further cash flows back to Game Cinemas. The cost of capital is 11%, and Games usually requires projects to have a payback within four years. Determine each projects payback and NPV, and advise the CEO what we should do The payback for the comedy is years, and the NPV of the comedy is s The payback for the thriller years, and the NPV of the thrilleris (Round to two decimal places as needed.) Advise the CEO. Choose the correct answer below O A. Since only one of the projects has a playback period of lem than four years, should be ich Projects that pay the company back guichey are always preferentie to projects that do not pay the company back as quickly on. Since or project has a negative NPV, the other project should be selected even though it has a payback greater than tour years. If that project's longer payback period in un contable, her neither project should be accepted OG Since the comedy has the higher NPV, it should be selected OD. Since the thriller has the higher NPV, it should be selected

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