Risks & Rewards (5)

• “Decent Profit Scenario at $2500 level

• Invest $2500

  • Book sells for $70,000 and film rights sell for $10,000: Total is $80,000
  • You get your principal back of $2500
  • Neil gets $15,000 profit (half the marginal profit after investors are paid back their principal)
  • You get 1/20th of the remaining profit, or $750
  • Your return on investment is therefore 30%

Notes: