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What is the npv of the movie

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Reference no: EM132632629

You are considering making a movie. The movie is expected to cost $10.3 million upfront and take a year to make. After? that, it is expected to make $4.2 million in the first year it is released? (end of year? 2) and $2.2 million for the following four years? (end of years 3 through? 6) . What is the payback period of this? investment? If you require a payback period of two? years, will you make the? movie? What is the NPV of the movie if the cost of capital is 10.2%?? According to the NPV? rule, should you make this? movie?

Reference no: EM132632629

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