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What is the payback period of this investment

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Reference no: EM131583336

You are considering making a movie. The movie is expected to cost $ 10.8 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 $ 1.9 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 %?

Reference no: EM131583336

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