You are considering making a movie. The movie is expected to cost $10.6 million upfront and take a year to produce. After that, it is expected to make $4.7 million in the year it is released and $2.1 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 a positive NPV if the cost of capital is 10.5%? What is the payback period of this investment?

1.) What is the payback period of this investment?

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

2.) Does the movie have positive NPV if the cost of capital is 10.5%? If the cost of capital is 10.5%, the NPV is

million.(Round to two decimal places.)