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  1. business
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  3. you are considering making a movie. the movie is e

You are considering making a movie. The movie is expected to cost $10.6 million upfront...

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Question

Accounting

You are considering making a movie. The movie is expected to cost

$10.6

million upfront and take a year to make. After that, it is expected to make

$4.1

million in the first year it is released (end of year 2) and

$1.9

million for the following four years (end of years 3 through 6) . 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%?

Question content area bottom

Part 1

What is the payback period of this investment?

The payback period is (rounded to nearest integrer)

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