Download - Brooks Competition JC Penney
Fallout from the
Hacking Scandal
http://www.motherjones.com/mixed-media/2014/06/north-korea-not-respond-yet-seth-rogen-james-franco-interview-movie-trailer
http://commons.wikimedia.org/wiki/File:Sony_pictures_logo.pngTeam 4Ying Chyi Gooi, Aaron Cheong, Yee Xiong
Hing
Agenda
Recommendation Capital Budgeting Revised Forecast Post-crisis Evaluation Questions for
Consideration Conclusion
Recommendation
http://www.impawards.com/2014/interview_ver3_xxlg.html
Recommendation
Charge $7/Pay-per-view
Alternative: $10/Pay-per-view
Capital Budgeting
Capital Budgeting (Task #1 analysis)
Scenario Summary Most Likely Best Case Worst Case
Changing Cells:
Theatrical (in units) 12,000,000 15,000,000 10,000,000
Pay-per-view (in units) 10,000,000 12,000,000 80,000,000
Result Cells:
NPV $8,047,068 $18,046,097 ($7,341,604)
IRR 17.40% 36.95% -10.71%
Revised Forecast
Revised Forecast(Task #2 analysis)
Scenario Summary Most Likely Best Case Worst Case
Changing Cells:
Theatrical (in units) 10,000,000 12,000,000 8,000,000
Pay-per-view (in units) 11,000,000 12,000,000 1,000,000
Result Cells:
NPV ($722,340) $5,743,036 ($7,128,326)
IRR 1.48% 14.21% -11.15%
Post-crisis Evaluation
http://venturebeat.com/2014/12/26/in-new-tragic-twist-critics-say-the-interview-is-actually-a-pretty-terrible-movie/
Post-crisis Evaluation(Task #3)
Scenario Summary Most Likely Best Case Worst Case
Changing Cells:
Theatrical (in units) 8,000,000 10,000,000 6,000,000
Pay-per-view (in units) 1,000,000 1,200,000 800,000
Result Cells:
NPV ($6,923,444) ($689,474) ($13,157,414)
IRR -10.13% 1.54% -20.81%
Post-crisis Evaluation(Task #3)
Scenario Summary
Most Likely(Solution 1)
Worst Case(Solution 1)
Worst Case(Solution 2)
Changing Cells:
Price $7 $7 $10
Result Cells:
NPV ($5,697,252) ($12,176,461) ($12,544,318)
IRR -7.85% -19.12% -17.09%
Value saved : $1,226,192 $980,953 $613,096
Questions for Consideration
http://www.impawards.com/2014/interview_ver3_xxlg.html
Questions for Consideration Movie-goers don’t decide
based on company
Exchange rate (USD/Y) influences Sony’s profitability
Government perceives threat
Conclusion
http://www.impawards.com/2014/interview_ver3_xxlg.html
Conclusion
Charge $7/Pay-per-view
Alternative: $10/Pay-per-view
