What is the payback period of investment

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Reference no: EM131881998

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 $4.9 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 10.3%?

What is the payback period of this investment?

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

Reference no: EM131881998

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