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You are considering making a movie. The movie is expected to cost 10.6 million up front and take a year to produce. After that, it
You are considering making a movie. The movie is expected to cost 10.6 million up front and take a year to produce. After that, it is expected to make 4.3 million in the year it is released and 2.2 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 10.9%. Round the payback period to one decimal place
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