Arundel Partners: The Sequel Project

26 sequels on Exhibit 7 have NPV>0. PV of Net Inflows (yr 4)

76.8 56.8 47.3 47.0 44.4 29.3 27.3 21.2 12.4 51.1 41.1 33.7 105.5 64.6 61.7 32.0 63.8 22.3 229.1 77.6 10.2 111.2 74.4 62.0 54.6 29.1 $1,486.5 $57.2

Hypothetical Sequel
Parenthood Born on the Fourth of July Field of Dreams Uncle Buck Sea of Love K-9 The Burbs Do the Right Thing Shocker Harlem Nights Pet Sematary Major League Look Who's Talking When Harry Met Sally Steel Magnolias See No Evil; Hear No Evil The War of the Roses Weekend at Bernie's Batman Driving Miss Daisey Young Einstein Honey, I Shrunk the Kids Dead Poets Society Little Mermaid Turner and Hootch Three Fugitives Sum Average per sequel

PV of Negative Cost (yr 3)

28.2 25.4 22.6 21.2 35.3 16.9 24.0 9.9 8.5 42.3 15.5 16.9 14.1 26.8 31.0 25.4 35.3 14.1 70.5 11.3 5.6 31.0 28.2 28.2 25.4 24.0 $637.6 $24.5

Arundel Partners: The Sequel Project

Suppose we make only 10 of the 26 sequels suggested by PV estimates in Exhibit 7. PV of Net Inflows (yr 4)
229.1 105.5 76.8 111.2 47 12.4 41.1 33.7 62 54.6 773.4

Hypothetical Sequel
Batman Look Who's Talking Parenthood Honey, I Shrunk the Kids Uncle Buck Shocker Pet Sematary Major League Little Mermaid Turner and Hootch

PV of Negative Cost (yr 3)

70.5 14.1 28.2 31 21.2 8.5 15.5 16.9 28.2 25.4 259.5 431.0 306.8 3.1 3.8

NPV at t = 3 = (773.4/1.12) - 259.5 = NPV at t = 0 = 431.0/(1.12)^3 = Divide by 99 films . . . NPV/sequel = If divide by 80 films . . . NPV/sequel =