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The CEO of Garneau Cinemas is considering making a movie and must decide between a comedy and a thriller-It doesn't have the production space to

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The CEO of Garneau Cinemas is considering making a movie and must decide between a comedy and a thriller-It doesn't have the production space to make both. The comedy is expected to cost $25 million up front (at t = 0). After that, it is expected to make $16 million in the first year (at t= 1) and $4 million in each of them following two years (at t = 2 and t = 3). In the fourth year (at t= 5), it is expected that the movie can be sold into syndication for $2 million with no further cash flows back to Garneau Cinemas. The thriller is expected to cost $35 million up front (at t = 0). After that, it is expected to make $15 million in the first year (at 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), it is expected that the movie can be sold into syndication for $30 million with no further cash flows back to Garneau Cinemas. The cost of capital is 12%, and Garneau usually requires projects to have a payback within four years. Determine each project's payback and NPV, and advise the CEO what she should do. GETTI The payback for the comedy is 3 years, and the NPV of the comedy is $1.43 The payback for the thriller is 6 years, and the NPV of the thriller is $2.56 (Round to two decimal places as needed.) D

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