Calculate the payback period and npv


Question: I would like to make a movie. The movie is expected to cost 10 million dollar upfront & take a year to make.  After that, it is expected to make 5 million dollar in the year [release] & two million dollar for the following four years. Calculate the payback period?  If I require a payback period of two years, should I make the movie? Does the movie have positive NPV if the cost of capital 10 percent?

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Finance Basics: Calculate the payback period and npv
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