Question: Please show your work and how you got the answer You are considering making a movie. The movie is expected to cost $ 10.8 million

Please show your work and how you got the answer

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 $ 4.9 million in the year it is released and $ 2.2 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 10.7 %?

What is the payback period of this investment? (Round to one decimal place.)

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