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Sweetwater Productions is evaluating a fim project. The president of Sweetwater estimates that the film...

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Accounting

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Sweetwater Productions is evaluating a fim project. The president of Sweetwater estimates that the film will cost $15,000,000 to produce In its first yenr, the film is expected to generate $16,476,000 in net reventie, atter which the film will be released to video. Video is expected to generate $9,830,000 in net revenue in its first year, $2,471,000 in its second year, and $972,400 in its third year. For tax purposes, amortization of the cost of the film will be $9,000,000 in year 1 and $6,000,000 in year 2 . The company's tax rate is 35 percent, and the company requires a 12 percent rate of returnon its films. Click here to view factor tables What is the net present value of the film project? To simplify, assume that all outlays to produce the film occur at time 0 . (Round present value foctor calculations to 4 decimol ploces, eg 1.2151 and final answer to 0 decimol places, eg. 125. Enter negotive amounts using either a negatlve slgn preceding the number es -45 or parenthesese 5 (45). resent value of S1 due in n nerinde

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