question archive The interest rate is 5%
Subject:EconomicsPrice: Bought3
The interest rate is 5%. It will cost $50,000,000 to make a movie. If the movie is not a success, it will not make any money. If it is a success, it will make $200,000,000 two years after production begins. If the studio believes there's a 30% chance of success, should they make this movie.
( ) Yes
( ) No