Question
You are considering making a movie. The movie is expected to cost $ 10.8 million up front and take a year to produce. After that,
You are considering making a movie. The movie is expected to cost $ 10.8 million up front and take a year to produce. After that, it is expected to make $ 4.1 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 10.6 %? What is the payback period of this investment?
The payback period is _____ years. (Round to one decimal place.)
If you require a payback period of two years, will you make the movie? No Yes . (Select from the drop-down menu.)
Does the movie have positive NPV if the cost of capital is 10.6 %? If the cost of capital is 10.6 %, the NPV is $ ____million.(Round to two decimal places.)
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