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You are considering making a movie. The movie is expected to cost $ 1 0 . 4 million up front and take a year to
You are considering making a movie. The movie is expected to cost $ million up front and take a year to produce. After that, it is expected to make $ million in the year it is released and $ 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 IF THE COST OF CAPITAL IS WHAT IS THE NPV
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