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The company is a part of the film division for a large entertainment conglomerate. The main office is located in Anaheim, California. In addition to

The company is a part of the film division for a large entertainment conglomerate. The main office is located in Anaheim, California. In addition to the feature film division, the conglomerate includes theme parks, home videos, a television channel, interactive games, and theatrical productions. The company has been enjoying steady growth over the past 10 years.
Last year, the total revenues increased by 12% to $21.2 billion.
The film division generated $274 million in revenues, which was an increase of 7% over the past year. However, the profit margin was down 3% to 16% because of the poor response to three of the five major film releases for the year.
For this assignment, you will assume the role of a member of the priority team. This team is in charge of evaluating and selecting film proposals.
Use the provided evaluation form to formally evaluate and rank each proposal. Report your rankings, and justify your decisions.
Assume that all of the projects have passed the estimated hurdle rate of 14% return on investment (ROI).
In addition to the brief film synopsis, the proposals include the following financial projections of theater and video sales:
80% chance of ROI
50% chance of ROI
20% chance of ROI
For example, for Proposal #1(Dalai Lama), consider the following:
There is an 80% chance that it will earn at least 8% ROI.
There is a 50/50 chance that the ROI will be 18%.
There is a 20% chance that the ROI will be 24%.
Use the following documents to prepare your evaluation:
Film Proposal
Evaluation Form

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