You are considering making a movie. The movie is expected to cost

$ 10.8 million

million up front and take a year to produce. After that, it is expected to make

$ 4.9 million

million in the year it is released and

$ 1.7 million

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

10.1 %?

The payback period is? how many years?