What is the payback period of this investment

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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 $ 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 ?

Reference no: EM132008781

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