This valuation assumes that each episode will be run 6 times. Up to 8 runs/episode, each additional run increases the advertising revenue of the cartoon by $840,000 (i.e., 7 runs/episode would add $840,000, 8 runs/episode would add $1,680,000). An assessment of your current advertising needs reveals that any more than 8 runs/episode would not be beneficial to WCHI. On the flip side, however, each decrease in the number of runs/episode results in a $840,000 decrease in advertising revenue (i.e., 5 runs/episode would decrease the value by $840,000, 4 runs/episode would decrease the value by $1,680,000). The total cost of the program is determined by multiplying the agreed upon price/episode by the number of episodes. Gazi will make 100 episodes of Ultra Rangers available. These 100 episodes are being offered, as part of a five-year contract; the number of episodes and length of this contract are non-negotiable. You know that management will not let you buy the series if the price exceeds $60,000 per episode; ho