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You are considering making a movie. The movie is expected to cost $10.1 million upfront and...

You are considering making a movie. The movie is expected to cost $10.1 million upfront and take a year to produce. After​ that, it is expected to make $4.3 million in the year it is released and $1.8 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 10.3%​?

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