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You are considering making a movie. The movie is expected to cost $ 1 0 . 6 million up front and take a year to
You are considering making a movie. The movie is expected to cost $ million up front and take a year to make. After that, it is expected to make $ million in the
year it is released and $ 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
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