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You are considering making a movie. The movie is expected to cost $ 1 0 . 8 million upfront and take a year to make.

You are considering making a movie. The movie is expected to cost $10.8 million upfront and take a year to make. After that, it is expected to make $4.4 million in the first year it is released (end of year 2)
and $2.1 million for the following 4 years (end of years 3 through 6).
What is the payback period of this investment?
If you require a payback period of 2 years, will you make the movie?
Does the movie have positive NPV if the cost of capital is 10.3%?
The payback period is enter your response here years.(Round up to the nearest integer.)
Based on the payback period requirement, would you make this movie?
If the cost of capital is 10.3%, the NPV is $enter your response here million. (Round to three decimal places.)

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