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An independent Canadian 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 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%.
-What is the NPV of this project if the film maker does not issue the new security? What is the NPV if the film maker issues the new security?
Motivator
Something or someone that provides a reason or incentive to act or exert effort.
Autonomy Support
The encouragement of self-initiative and independence by providing options and respecting individuals' choices.
McClelland's Theory
A motivational theory suggesting that people are driven by needs for achievement, power, and affiliation, influencing their behavior and performance.
Comparison Person
An individual used as a benchmark to evaluate one's own situation, achievements, or performance in social comparison theory.
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