You are considering making a movie. The movie is expected to cost $10.5 million up front and take a year to produce. After that, it is expected to make $4.5 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 10.7%?

What is the payback period of this investment?

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

Part 2

If you require a payback period of two years, will you make the movie?

Yes or no

Part 3

Does the movie have positive NPV if the cost of capital is 10.7%?

If the cost of capital is 10.7%, the NPV is million.(Round to two decimal places.)