You are considering making a movie. The movie is expected to cost

$10.6

million up front and take a year to produce. After that, it is expected to make

$4.7

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

10.1%?

Question content area bottom

Part 1

What is the payback period of this investment?

The payback period is

enter your response here

years