Question 3 Bookmark this page Problem Set due Dec 8, 2021 23:00 +08 Question 3 4 points possible (graded) You are considering to start your own podcast show. It will take you a year to develop a concept and produce a series of 5 pilot episodes. The expected development costs are $50 thousand. For simplicity, assume that the entire $50 thousand is spent immediately, i.e., in Year 0. The podcast will be launched one year from now (i.e., in Year 1), and you expect the cash flows to be $25 thousand one year after the podcast is released, i.e., in Year 2. For the subsequent 4 years, you expect cash flows to be $10 thousand per year, i.e., in Year 3, Year 4, Year 5, and Year 6 cash flows will be 10 thousand. (a) What is the payback period for this investment? years (b) If you require a payback period of six years, will you make the podcast? Select an option (c) What is the NPV of the project if the cost of capital is 13%? thousand (d) Does the NPV rule agree with the payback rule in this case? Select an option Yes No