Question: Motionfire Films is considering making a drama, a horror, or a comedy film. Due to space limitations at their studio, they will only be able
Motionfire Films is considering making a drama, a horror, or a comedy film. Due to space limitations at their studio, they will only be able to make one of the three films. Below is the estimates for the NPV, IRR, and the Payback Period of each of the three projects:
| Film | NPV | IRR | Payback |
| Drama | 10.5 | 12% | 2.3 |
| Horror | 9.4 | 15% | 1.7 |
| Comedy | 12.3 | 11% | 3.0 |
Which film (if any) should Motionfire make?
| Drama | ||
| Horror | ||
| Comedy | ||
| None | ||
| Not enough information to decide |
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
