You are considering making a movie. The movie is expected to cost $10.4 million up front and take a year to produce. Aftee that it is expected to make $4.2 million jn the hear it is released and $1.8 million for the following 4 years. What is the payback period for this investment? If you require a payback period of 2 years, will you make the movie? Does the movie have posiive NPV if the cost of capital is 10.9%?

You are considering making a movie. The movie is expected to cost $10.4 mittion up front and take a yoar to produce. Aler that, it is expected to make $4.2 million in the year it is released and 51 . I million for the following four years. What is the payback period of this investment? if you require a payback period of two years, wall you make the mevie? Does movio have positve NPV if the cost of capital is 10.9%