=+Assume that MGM releases a film during early 2009 at a cost of $115 million, and releases it halfway through the year. During the last half of 2009, the film earns revenues of $140 million at the box office. The film requires $45 million of advertising during the release. One year later, by the end of 2010, the film is expected to earn MGM net cash flows from home video sales of

$36 million. By the end of 2011, the film is expected to earn MGM $19 million from pay TV;

and by the end of 2012, the film is expected to earn $4 million from syndication.