What is the payback period for this investment

Assignment Help Financial Management

Reference no: EM131905531

You are considering making a movie. The movie is expected to cost $10.5 million upfront and take a year to make. After?that, it is expected to make $4.9 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?

What is the payback period for this investment?

The payback period is ? years (Round up to nearest integer)

Based on the payback period requirement, would you make this movie?

What is the NPV of the movie if the cost of the capital is 10.2%?

The NPV is $?million (Round to three decimal places)

Reference no: EM131905531

Questions Cloud

Statements is correct concerning unsystematic risk : Which one of the following statements is correct concerning unsystematic risk?

The beta be for the other stock in your portfolio : What must the beta be for the other stock in your portfolio?

Supplies bulletin board services to numerous universities : The Dawn H. Company supplies bulletin board services to numerous universities and colleges in canada.

What kind of deal did running back scamper off with : what kind of deal did the running back scamper off with? Assume all payments other than the first $10 million are paid at the end of the contract year.

What is the payback period for this investment : What is the payback period for this investment? What is the NPV of the movie if the cost of the capital is 10.2%?

What would be the cost of equity from new stock : what is the company's cost of common equity if all of its equity comes from retained earnings? what would be the cost of equity from new stock?

What is your net payoff : If stock price of Starbucks is $55 at the expiration date, what is your net payoff? Do you wish the stock price to increase or decrease?

What is the firm''s horizon or continuing value : How far away is the horizon date? What is the firm's horizon or continuing value?

What must coupon rate be on bonds : Kiss the Sky Enterprises has bonds on the market making annual payments, What must the coupon rate be on the bonds?

User Account

All Pages