Business & Finance Homework Help

Help answering what the payback period, the payback period of two years, and if the movie has a positive npv if

the cost of capital is 10.1

You are considering making a movie. The movie is expected to cost $10.8 million up front and take a year to produce. After that. it is expected to make $4.2 million in the year it is released and$1.6 million for the following fouryears. What is the payback period of this invesh’nent‘? If you require a payback period of two years. will you make the movie? Does the movie have positive NWif the cost of capital is 10.1%? What is the payback period of this investment? The payback period is years. (Round to one decimal place.)