The CEO of Garneau Cinemas is considering making a movie and must decide between a comedy and a

thrillerit doesn't have the production space to make both. The comedy is expected to cost

$25 million up front (at t = 0). After that, it is expected to make

$16 million in the first year (at t = 1) and

$4 million in each of the following two years (at t = 2 and t = 3). In the fourth year (at t = 5), it is expected that the movie can be sold into syndication for

$2 million with no further cash flows back to Garneau Cinemas. The thriller is expected to cost $45 million up front (at t = 0). After that, it is expected to make

$25 million in the first year (at t = 1) and $5 million in each of the following four years (at t = 2, 3, 4, and 5). In the sixth year (at t = 6), it is expected that the movie can be sold into syndication for

$30 million with no further cash flows back to Garneau Cinemas. The cost of capital is

11%, and Garneau usually requires projects to have a payback within four years. Determine each project's payback and NPV, and advise the CEO what she should do.

1) The payback for the comedy is

______________ years, and the NPV of the comedy is ______________

2) The payback for the thriller is ______________ years, and the NPV of the thriller is ________________