Question: 7 - 2 2 . You are considering making a movie. The movie is expected to cost $ 1 0 million in year 0 and

7-22.You are considering making a movie. The movie is expected to cost $10 million in year 0 and takes year 1 to make. In year 2 it is expected to make $5 million and $2 million per year for the following four years.
What is the payback period of this investment?
Does the movie have a positive NPV if the cost of capital is 10%? Compute the NPV.

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