Question: Please show work and explain how you got the answer 7-22. You are considering making a movie. The movie is expected to cost $10 million

Please show work and explain how you got the answer

7-22. You are considering making a movie. The movie is expected to cost $10 million upfront and take a year to make. After that, it is expected to make $5 million when it is released in one year and $2 million per year 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 a positive NPV if the cost of capital is 10%

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