Risks & Rewards (4)

• “Expected Profit Scenario

• Invest $5000

  • Book sells for $70,000 and film rights sell for $20,000, audio and ebook rights are $10,000: Total is $100,000
  • You get your principal back of $5000
  • Neil gets $25,000 profit (half the marginal profit after investors are paid back their principal)
  • You get 1/10th of the remaining profit, or $2500
  • Your return on investment is therefore 50%

Notes: