You are considering making a movie. The movie is expected to cost $10.5 million upfront and take a year to make. After?that, it is expected to make $4.9 million in the first year it is released?(end of year?2) and $ 2.2 million for the following four years?(end of years 3 through?6). What is the payback period of this?investment? If you require a payback period of two?years, will you make the?movie? What is the NPV of the movie if the cost of capital is 10.2%? According to the NPV ?rule, should you make this? movie?
What is the payback period for this investment?
The payback period is ? years (Round up to nearest integer)
Based on the payback period requirement, would you make this movie?
What is the NPV of the movie if the cost of the capital is 10.2%?
The NPV is $?million (Round to three decimal places)