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

$10.9

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

$4.6

million in the year it is released and

$1.7

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

10.8%?

A. The payback period is _____ years

B. If you require a pyaback period of two years, will you make the move yes or no?

C. Does the movie have a positive NPV if the cost of capital is 10.8%?

If the cost of capital is 10.08%, the NPV is ____________