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  3. 8.9 cost $10.7 million up front and take a year t

8.9 cost $10.7 million up front and take a year to produce. After tha...

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Finance

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8.9

cost $10.7 million up front and take a year to produce. After tha it is expected to make $4.4 million in the year it is released and \$2.2 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 10.5% ? What is the payback period of this investment? The payback period is 5.5 years. (Round to one decimal place.) If you require a payback period of two years, will you make the movie? (Select from the drop-down menu.) Does the movie have positive NPV if the cost of capital is 10.7%? If the cost of capital is 10.7%, the NPV is $ million. (Round t two decimal places.)

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