Question

You are considering making a movie. The movie is expected to cost $ 10.4 million up front and take a year to produce. After​ that, it is expected to make $ 4.6 million in the year it is released and $ 2.1 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 10.2 %​?What is the payback period of this​ investment?  

The payback period is?? years. ​(Round to one decimal​ place.)

Answer 1