Jason Bourne is in film making business who specializes in making sequels. He bu

Question

Jason Bourne is in film making business who specializes in making sequels. He buys the rights of successful movies and makes sequels. From his experience he knows that each sequel costs 18% higher than the previous movie in the same series due to inflation and higher salary asked by the key actors, whereas the revenue declines by 14% due to diminishing popularity. He decides to buy the rights of the 2015 hit movie Pixels. Pixels grossed $240 million in Box office and was produced with a budget of $90 million. How many profitable sequels will Jason be able to make?

Explanation / Answer

Budgeted cost $    90.00 million Expected cost for sequel $ 106.20 million Revenue $ 240.00 million Expexted revenue for Sequel $ 206.40 million Total Profit $ 100.20 million

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.