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Imagine That You Are the Producer of Harry Potter Films

question 38

Multiple Choice

Imagine that you are the producer of Harry Potter films. You are trying to decide whether to film the next two Harry Potter movies at the same time. If you film them both at once, you can save money on production costs, but you could lose a lot of money if the first one flops and no one goes to see the second one. Specifically, if you film them both at once, it will cost
A total of $300 million, but if you film them separately, they will cost $200 million each. If the first one is successful, it will have revenues of $1 billion and the second one will have
Revenues of $1.5 billion. If the first one fails, it will only have revenues of $150 million and the second one will have revenues of only $50 million. If you decide to film them separately and the first one flops, you don't have to film the second one. The first film has a 50% chance of succeeding and a 50% chance of failing. Assume that all figures are given as present values (you do not need to do any additional discounting) . Should you film both of them now or film them separately? Why?

Definitions:

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Guidelines that help ensure the delegation of tasks is done in a way that maximizes efficiency, enhances team capabilities, and achieves desired outcomes.

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The undesirable situation where an employee is advanced to a level of responsibility or leadership that exceeds their competence or experience, often leading to stress and underperformance.

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Recognizing and embracing differences within a group or community, such as cultural, racial, gender, and cognitive diversity, to foster inclusivity and harness diverse perspectives.

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Workshops or meetings aimed at increasing awareness and understanding of diversity and inclusion, often focusing on strategies to embrace and celebrate differences within groups or organizations.