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 $4.2 million in the year it is released and $2.1 million for the following four years.

a. What is the payback period of this investment? Enter in years (Round to one decimal place.)

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

c. Does the movie have positive NPV if the cost of capital is 10.6%?