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 $ 4.4 million in the year it is released and $ 1.9 million for the following four years.

What is the payback period of this investment?

The payback period is____ yrs.(Round to one decimal place)

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

A.Yes

B. No

Does the movie have positive NPV if the cost of capital is 10.8 %?

If the cost of capital is 10.8%, the NPV is $____ Million. (Round to two decimal places)