You are considering making a movie. The movie is expected to cost $10.6 million up...
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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 $4.6 million in the year it is released and $1.8 million for the following four years.
a. What is the payback period of this investment in years?(Round to one decimal place.)
b. If you require a payback period of two years, will you make the movie? No or Yes
c. Does the movie have positive NPV if the cost of capital is 10.3%? In million ____(Round to two decimal places.)
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