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The CEO of Garneas Conemas is considering making a movie and must decide between a comedy and a triker-it doesnt have the producton space to'nake

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The CEO of Garneas Conemas is considering making a movie and must decide between a comedy and a triker-it doesnt have the producton space to'nake both. The cormedy is expected to cont $25 milion up front (at t=0 ). Afer that it is expected to make $18 milion in the feat year (at t=1 ) and $4 millon in esch of the following two years (at t=2 and t=33. In the fouth year (at t=5 ), it is expected that the movie can be sold inte syndication for $2 million with no further cash fows back to Cameau Chemas. The thriler is cupecled to cost $40 milion up front (at t of Afier that, t is expected to make $20 milion in the first year (ot t=1 ) and $5 million in each of the following four years (at t=2,3,4, and 5 ). In the sixth year (at t=6 ), th is expecied that the move can be wald inte syndication for $30 milian with no further cash flows back to Gameau Cinemas. The cost of capital is 11%, and Garneau usually requires projects to havn a payback within four years. Deiermine each projects payback and NPV, and advise the CEO what she should do. The payback for the comedy is years, and the NPV of the comedy is 5 The payback for the thriler is years, and the NPV of the thriler is 1 (Round to two decimal places as needed.)

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