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Use the information below to answer questions Fabulous Films is reviewing several screenplays in selecting the next film that it will produce.
€ 5.000.000
1. Calculate the NPV of the film, "Cat Farm"
2. Calculate the NPV of the film, "Best Friends Forever"
3. Calculate the NPV of the film, "Ashley and Garfield: A Love Story"
4. Based on your calculations, which film do you believe Fabulous Films should produce? Briefly explain your decision.