Use the Information for the Question(s)below

question 56

Multiple Choice

Use the information for the question(s) below.
An independent film maker is considering producing a new movie.The initial cost for making this movie will be $20 million today.Once the movie is completed,in one year,the movie will be sold to a major studio for $25 million.Rather than paying for the $20 million investment entirely using its own cash,the film maker is considering raising additional funds by issuing a security that will pay investors $11 million in one year.Suppose the risk-free rate of interest is 10%.
-Without issuing the new security,the NPV for this project is closest to what amount? Should the film maker make the investment?

• A)$1.7 million;Yes
• B)$1.7 million;No
• C)$2.7 million;Yes
• D)$2.7 million;No

Understand different styles of grandparenting and their impact on family dynamics.

Identify and explain ageism and its effects on society.

Comprehend the factors affecting retirement and financial well-being in older age.

Recognize the stereotypes and realities of aging, especially regarding health and sexuality.

---

Definitions:

Revocability

The ability to nullify, cancel, or repeal an agreement or contract.

Assignments

The transfer of rights or property from one party to another, often used in the context of contracts or legal agreements.

Promisor

A party in a contract who has agreed to perform a duty or obligation to another, known as the promisee.

Intended Third-party Beneficiary

A person who is not directly involved in a contract but is intended by the contracting parties to benefit from the contract.