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You are considering making a movie. The movie is expected to cost $ 10.7 million up...

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Finance

You are considering making a movie. The movie is expected tocost $ 10.7 million up front and take a year to make. After​ that,it is expected to make $ 4.5 million in the year it is released and$ 2.1 million for the following four years. What is the paybackperiod of this​ investment? If you require a payback period of two​years, will you make the​ movie? Does the movie have positive NPVif the cost of capital is 10.9 %​?

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