Risks & Rewards (3)

• “Decent Profit Scenario

• Invest $5000

  • Book sells for $70,000 and film rights sell for $10,000: Total is $80,000
  • You get your principal back of $5000
  • Neil gets $15,000 profit (half the marginal profit after investors are paid back their principal)
  • You get 1/10th of the remaining profit, or $1500
  • Your return on investment is therefore 30%

Notes: