You are considering making a movie. The movie is expected to cost $10.7 million up front and take a year to produce. After that, it is expected to make $4.4 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 positive NPV if the cost of capital is 10.4%? What is the payback period of this investment? The payback period is years. (Round to one decimal place.) If you require a payback period of two years, will you make the movie? (Select from the drop-down menu.) Does the movie have positive NPV if the cost of capital is 10.4%? If the cost of capital is 10.4%, the NPV is $ million. (Round to two decimal places.) Consider the following two projects: Project Year 0 Year 1 Year 2 Year 3 Year 4 Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow - 100 40 50 N/A - 73 30 30 30 30 Discount Rate 0.12 0.12 A 60 B The net present value (NPV) of project A is closest to: A. 18.3 B. 22.9 C. 20.1 O D. 45.7 Your factory has been offered a contract to produce a part for a new printer. The contract would last for 3 years and your cash flows from the contract would be $5.24 million per year. Your upfront setup costs to be ready to produce the part would be $8.11 million. Your discount rate for this contract is 8.4%. a. What does the NPV rule say you should do? b. If you take the contract, what will be the change in the value of your firm? a. What does the NPV rule say you should do? The NPV of the project is $ million. (Round to two decimal places.) What should you do? (Select the best choice below.) A. The NPV rule says that you should not accept the contract because the NPV0. D. The NPV rule says that you should not accept the contract because the NPV>0. b. If you take the contract, what will be the change in the value of your firm? If you take the contract, the value added to the firm will be $ million. (Round to two decimal places.)