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You are considering making a movie. The movie is expected to cost $10.7 million upfront and take a year to make. After that, it is
You are considering making a movie. The movie is expected to cost $10.7 million upfront and take a year to make. After that, it is expected to make $4.6 million in the first year it is released (end of year 2) and $2.1 million for the following four years (end of years 3 through 6). 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 5 years. (Round up to nearest integer.) Based on the payback period requirement, would you make this movie? No (Select from the drop-down menu.) Does the movie have positive NPV if the cost of capital is 10.3%? The NPV is $ million. (Round to three decimal places.) The movie has a NPV. (Select from the drop-down menu.)
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