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You are considering making a movie. The movie is expected to cost $ 10.9 million upfront and take a year to make. After that, it
You are considering making a movie. The movie is expected to cost $ 10.9 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 year2) and $ 1.7 million for the following four years(end of years 3 through6) . What is the payback period of this investment? If you require a payback period of two years, will you make the movie? What is the NPV of the movie if the cost of capital is 10.2 %?
what is the NPV in million:
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