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Homework: HW8 - Chapter 8 Homework Save Score: 3.33 of 10 pts 8 of 12 (9 complete) HW Score: 69.44%, 83.33 of 120 pts 2x
Homework: HW8 - Chapter 8 Homework Save Score: 3.33 of 10 pts 8 of 12 (9 complete) HW Score: 69.44%, 83.33 of 120 pts 2x P 8-27 (similar to) Question Help You are considering making a movie. The movie is expected to cost $10.7 million up front and take a year to produce. After that, it is expected to make $4.9 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 10.2%? What is the payback period of this investment? The payback period is years. (Round to one decimal place.)
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