You are considering making a movie. The movie is expected to cost $10.4 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 $1.9 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%?

What is the payback period of this investment

A. The payback period is ? years.(Round to one decimal place.)

Does the movie have positive NPV if the cost of capital is 10.8%

B. If the cost of capital is 10.8%, the NPV is $ ? million.(Round to two decimal places.)