George Clooney has been offered $14 million (to be paid in 1 year from now) for starring in Batman 4, Batman 5, and Batm
Posted: Thu Apr 28, 2022 1:38 pm
George Clooney has been offered $14 million (to be paid in 1
year from now) for starring in Batman 4, Batman 5, and Batman 6. If
Clooney accepts this offer, he will have to forego acting in
Ocean’s 14, Ocean’s 15, and Ocean’s 16 that would have paid him $5
million each (in 2, 3, and 4 years from now). Clooney assumes his
personal cost of capital is 10%. Based on this information, the NPV
today of Clooney’s decision to accept Batman films is:
$1.42 million $12.72 million $1.56 million $14.00 million
year from now) for starring in Batman 4, Batman 5, and Batman 6. If
Clooney accepts this offer, he will have to forego acting in
Ocean’s 14, Ocean’s 15, and Ocean’s 16 that would have paid him $5
million each (in 2, 3, and 4 years from now). Clooney assumes his
personal cost of capital is 10%. Based on this information, the NPV
today of Clooney’s decision to accept Batman films is:
$1.42 million $12.72 million $1.56 million $14.00 million