You are working on an estimated NPV for a movie project. It will cost $75 million to produce the first movie, and there is a 25% chance it is a success (producing a CF of $185 million in a year), and a 75% chance it is not successful (with a CF of $45 million).

If the first movie is a success, then youll fund a big budget sequel. Itll cost $280 million and has a 95% chance of generating a $950 million cash flow in 2 years, and a 5% chance of a $210 million cash flow.

If the first movie is not a success, youre planning to do a low-budget sequel. In this case, the sequel will cost $35 million, and has a 80% chance of a $50 million cash flow, and a 20% chance of a $25 million cash flow. Your discount rate is 17% for this movie.

What is the NPV?