Question
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
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
$4.1
million in the year it is released and
$1.8
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%?
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The Dark Side Of Valuation
Authors: Aswath Damodaran
2nd Edition
0137126891, 9780137126897
