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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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