Arundel Partners: The Sequel Project

26 sequels on Exhibit 7 have NPV>0.

PV of Net PV of Negative
Inflows (yr 4) Cost (yr 3)
Parenthood 76.8 28.2
Born on the Fourth of July 56.8 25.4
Field of Dreams 47.3 22.6
Uncle Buck 47.0 21.2
Sea of Love 44.4 35.3
K-9 29.3 16.9
The Burbs 27.3 24.0
Do the Right Thing 21.2 9.9
Shocker 12.4 8.5
Harlem Nights 51.1 42.3
Pet Sematary 41.1 15.5
Major League 33.7 16.9
Look Who's Talking 105.5 14.1
When Harry Met Sally 64.6 26.8
Steel Magnolias 61.7 31.0
See No Evil; Hear No Evil 32.0 25.4
The War of the Roses 63.8 35.3
Weekend at Bernie's 22.3 14.1
Batman 229.1 70.5
Driving Miss Daisey 77.6 11.3
Young Einstein 10.2 5.6
Honey, I Shrunk the Kids 111.2 31.0
Dead Poets Society 74.4 28.2
Little Mermaid 62.0 28.2
Turner and Hootch 54.6 25.4
Three Fugitives 29.1 24.0
Sum $1,486.5 $637.6
Average per sequel $57.2 $24.5
Hypothetical Sequel
Arundel Partners: The Sequel Project
Suppose we make only 10 of the 26 sequels
suggested by PV estimates in Exhibit 7.
PV of Net PV of Negative
Inflows (yr 4) Cost (yr 3)
Batman 229.1 70.5
Look Who's Talking 105.5 14.1
Parenthood 76.8 28.2
Honey, I Shrunk the Kids 111.2 31
Uncle Buck 47 21.2
Shocker 12.4 8.5
Pet Sematary 41.1 15.5
Major League 33.7 16.9
Little Mermaid 62 28.2
Turner and Hootch 54.6 25.4
773.4 259.5
NPV at t = 3 = (773.4/1.12) - 259.5 = 431.0
NPV at t = 0 = 431.0/(1.12)^3 = 306.8
Divide by 99 films . . . NPV/sequel = 3.1
If divide by 80 films . . . NPV/sequel = 3.8
Hypothetical Sequel