Question

You are considering making a movie. The movie is expected to cost $ 10.8 million up front and take a year to produce. After​ that, it is expected to make $ 4.7 million in the year it is released and $ 1.7 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 10.5 % ​? What is the payback period of this​ investment?   The payback period is 5.7 years.  ​(Round to one decimal​ place.) If you require a payback period of two​ years, will you make the​ movie? No . ​(Select from the​ drop-down menu.) Does the movie have positive NPV if the cost of capital is 10.5 % ​? If the cost of capital is 10.5 % ​, the NPV is ​$_ million.  ​(Round to two decimal​ places.)

Answer 1