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Part $1$

You are considering making a movie. The movie is expected to cost $$10\mathrm{.}7$ million up front and take a year to make. After$$ that, it is expected to make $$4\mathrm{.}8$ million in the year it is released and $$2\mathrm{.}1$ million for the following four years. 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 $10\mathrm{.}1\%?$

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Part $1$

What is the payback period of this$$ investment?$$

The payback period is

$$

$4\mathrm{.}9$ years. $($Round to one decimal$$ place.$)$

Part $2$

If you require a payback period of two$$ years, will you make the$$ movie?

No

No

Yes

$.($Select from the$$ drop$-$down menu.$)$

Part $3$

Does the movie have positive NPV if the cost of capital is $10\mathrm{.}1?$

If the cost of capital is $10\mathrm{.}1\%,$ the NPV is $$$

$$

enter your response here million. $($Round to two decimal$$ places.$)$