You are considering making a movie. The movie is expected tocost $ 10.8 million up front and take a year to produce. After?that, it is expected to make $ 4.1 million in the year it isreleased and $ 2.2 million for the following four years. What isthe payback period of this? investment? If you require a paybackperiod of two? years, will you make the? movie? Does the movie havepositive NPV if the cost of capital is 10.6 %?? What is the paybackperiod of this? investment???
The payback period is _____ years. (Round to one decimal?place.)
If you require a payback period of two? years, will you makethe? movie? ? No Yes . ?(Select from the? drop-down menu.)
Does the movie have positive NPV if the cost of capital is 10.6%?? If the cost of capital is 10.6 %?, the NPV is ?$____million.?(Round to two decimal? places.)
