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You are considering making a movie. The movie is expected to cost $ 10.7 million up...

You are considering making a movie. The movie is expected to cost $ 10.7 million up front and take a year to make. After​ that, it is expected to make $ 4.5 million in the year it is released and $ 2.1 million for the following four years. What is the payback period of this​ investment? If you require a payback period of two​ years, will you make the​ movie? Does the movie have positive NPV if the cost of capital is 10.9 %​?

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jeff jeffy answered 5 months ago
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