Walla Walla Productions is evaluating a film project. The president of Walla Walla estimates that the film will cost $20,000,000 to produce. In its first year, the film is expected to generate $16,526,000 in net revenue, after which the film will be released to video. Video is expected to generate $10,237,000 in net revenue in its first year, $2,395,300 in its second year, and $961,000 in its third year. For tax purposes, amortization of the cost of the film will be $12,000,000 in year 1 and $8,000,000 in year 2. The companys tax rate is 40 percent, and the company requires a 14 percent rate of return on its films. What is the net present value of the film project? To simplify, assume that all outlays to produce the film occur at time 0. (Round present value factor calculations to 4 decimal places, e.g. 1.2151 and final answer to 0 decimal places, e.g. 125. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

The net present value

$_____________________________

Should the company produce the film?

The company select an option ____ SHOULD or SHOULD NOT___produce the film.