You are considering making a movie. The movie is expected to cost $ 10.8 million up...

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Finance

You are considering making a movie. The movie is expected tocost $ 10.8 million up front and take a year to produce. After?that, it is expected to make $ 4.1 million in the year it isreleased and $ 2.2 million for the following four years. What isthe payback period of this? investment? If you require a paybackperiod of two? years, will you make the? movie? Does the movie havepositive NPV if the cost of capital is 10.6 %?? What is the paybackperiod of this? investment???

The payback period is _____ years. (Round to one decimal?place.)

If you require a payback period of two? years, will you makethe? movie? ? No Yes . ?(Select from the? drop-down menu.)

Does the movie have positive NPV if the cost of capital is 10.6%?? If the cost of capital is 10.6 %?, the NPV is ?$____million.?(Round to two decimal? places.)

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