You are considering making a movie the movie is expected to


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 $ 4.1 million in the first year it is released? (end of year 2) and $ 1.8 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?

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Financial Management: You are considering making a movie the movie is expected to
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