Question: please answer all 3. ill like ur answer THIS QUESTION HAS THREE PARTS You are considering making a movie. The movie is expected to cost

please answer all 3. ill like ur answer  please answer all 3. ill like ur answer THIS QUESTION HAS
THREE PARTS You are considering making a movie. The movie is expected

THIS QUESTION HAS THREE PARTS You are considering making a movie. The movie is expected to cost $20 million up front (at t=0) and take a year to produce After that, it is expected to generate positive cash flow of $14 million in the year it is released (at t=2). In year 3, the film is expected to generate $4.2 million as a result of DVD sales, with cash flows decreasing by 25% in perpetuity from then on. The timeline for this project is provided below t= 0 1 3 CF ($million) -20 14 4.2 3.15 Question A: If your movie studio makes investment decisions based solely on a required payback period of three years, would you make this movie? O A. YES OB. NO O C. There is not enough information to answer this question 0; Cas Question B: If your firm's cost of capital is 10%, what is the NPV of this opportunity? (Choose the most appropriate answer) Cash O A. $3.57 million OB. $26 28 million Cash Cash Click to select your answer. UB. NU O C. There is not enough information to answer this question View page source Inspect Ctrl+Shift+1 Question B. If your firm's cost of capital is 10%, what is the NPV of this opportunity? (Choose the most appropriate answer) O A. $3.57 million OB. $26.28 million OC. $6.00 million OD. $0.59 million O E. $1.49 million Question C: The profitability index of this film is closest to which of the following? OA 0744 OB. 0900 O C..0675 OD. .0255 O E. 0856 Cash Cash Click to select your

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