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PLEASE USE EXCEL. You are considering making a movie. The movie is expected to cost $10.5 million upfront and take a year to make. After
PLEASE USE EXCEL.
You are considering making a movie. The movie is expected to cost $10.5 million upfront and take a year to make. After that, it is expected to make $4.4 million in the first year it is released (end of year 2 ) and $1.9 million for the following four years (end of years 3 through 6 ). 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% ? Does the movie have positive NPV if the cost of capital is 10.9% ? The NPV is $ million. (Round to three decimal places.)Step by Step Solution
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