East Productions ("East") is considering producing a movie. The movie is expected to cost Php 10 million upfront and will take six months to make. After which, it is expected to make Php 6 million when it is released during the film festival, which happens at the end of the year. East wishes to distribute the film to all audiences after the film festival, and plans to do so by distributing the film both through a streaming service and through DVD sales. After the film festival, East immediately enters into the following transactions at the same time: - East enters into a contract with a streaming service Flix, which will have the film available in the streaming catalog for 5 years. East will be paid Php2 million upfront, and will have a share in profits of the streaming site which are estimated to be Php 350 thousand per year at the end of each year of the agreement. - East ties up with a distributor to distribute the film via DVD. It is expected to earn sale revenue of Php 250 thousand per year for 10 years. The cost of capital of this project is 8%. East Production's investors require a payback period of four (4) years. You were retained by East to analyze the financials of this project. (a) Determine payback period of investing in this undertaking. (b) Evaluate whether the project should be pursued using the Payback Period Rule (c) Determine the Net Present Value of this project (d) Recommend whether East should proceed with making the movie