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Topic: Business
Number of pages / Number of words: 4 / 1007
Essay's paper body

We simply select

the films from the sample that have positive estimated returns for their sequels. In our case

these are 28 films out of a total sample of 99 films. Then we recognise that the negative costs

will be incurred three years ahead, while the revenue (net inflows) will accrue in four years

time...


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Then we recognise that the negative costs

will be incurred three years ahead, while the revenue (net inflows) will accrue in four years

time. Thus, we calculate the discounted value for both the negative cost and the net inflows on

a one-film basis by multiplying the corresponding mean values by the fraction of sequels with

positive estimated returns over the total sample size (28/99)...


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