Question
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
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
$4.3
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
10.3%?
What is the payback period of this investment?
The payback period is
nothing
years.(Round to one decimal place.)
If you require a payback period of two years, will you make the movie?
NoNo
YesYes
. (Select from the drop-down menu.)Does the movie have positive NPV if the cost of capital is
10.3%?
If the cost of capital is
10.3%,
the NPV is
$nothing
million.(Round to two decimal places.)
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