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    mcclainave96's Avatar
    mcclainave96 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Feb 15, 2011, 02:39 PM
    You are considering making a movie. The movie is expected to cost $10 million upfront
    You are considering making a movie. The movie is expected to cost $10 million upfront and take a year to make. After that, it is expected to make $5 million in the year it is released and $2 million for the following four years. What is the payback period of this investment? If you require a payback period of two years years, will you make the movie? Does the movie have a positive NPV if the cost of capital is 10%? Show detailed calculations when answering the problem.
    Curlyben's Avatar
    Curlyben Posts: 18,514, Reputation: 1860
    BossMan
    		  
    #2

    Feb 15, 2011, 02:56 PM
    Thank you for taking the time to copy your homework to AMHD.
    Please refer to this announcement: https://www.askmehelpdesk.com/financ...-b-u-font.html
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