This is a quantitative NPV analysis case requiring the candidate to model cash flows for two media projects with probabilistic outcomes. The case tests financial rigor, structured thinking, and the ability to identify sunk costs (the script expense) versus relevant costs in decision-making.
Nica Productions is an American Media company that is trying to figure out which will be its next project. This company has an extensive experience producing series and movies for all type of audiences and has got many awards doing so. This company has two alternatives, produce a series for a streaming company or a movie to be projected in cinemas worldwide.
Produce media content implies big investments and low certainty about the potential incomes, which depends on many factor, for that reason, our client has hired us to help him/her decide which is the best alternative for him/her.