Fish a remake of the successful broadway musical cats for


Question: Fish, a remake of the successful Broadway musical, Cats (for fish-lovers), will take one year to produce and will require that the production company make an immediate investment of $3,000,000. Beginning at the end of that first year and continuing in perpetuity, the production company will receive a single lump sum payment of $500,000 a year. The company's cost of capital is 18%. Should Fish be produced?

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