Question
NEED ANSWER ASAP PLEASE! You are considering making a movie. The movie is expected to cost $10.8 million upfront and take a year to make.
NEED ANSWER ASAP PLEASE!
You are considering making a movie. The movie is expected to cost $10.8 million upfront and take a year to make. Afterthat, it is expected to make $4.3 million in the first year it is released(end of year2) and $2.1 million for the following four years(end of years 3 through6).
1- What is the payback period of this investment ( years)?
2- If you require a payback period of twoyears, will you make themovie?
3- What is the NPV of the movie if 2- The cost of capital is 10.2%?
4- According to the NPVrule, should you make thismovie? (Round up to nearestinteger.)
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