Does the movie have positive npv

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Reference no: EM133557769

You are considering making a movie. The movie is expected to cost $10.9 million up front and take a year to make. After that, it is expected to make $4.9 million in the year released and $1.7 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 NPVif the cost of capital is 10.2%? The payback period is 5.5 years. (Round to one decimal place.) Based on the payback period requirement, would you make this movie?

Reference no: EM133557769

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