Question

FIN 320-11 Fall2019 gavin gobel & 11/27/19 10:53 PM Save Homework: Ch 8 Homework Score: 0.67 of 1 pt WP 8-27 (similar to) 4 of 4 (4 complete) HW Score: 91.67%, 3.67 of 4 pts Question Help You are considering making a movie. The movie is expected to cost $10.2 million up front and take a year to produce. After that, it is expected to make $4.2 million in the year it is released and $1.7 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%? What is the payback period of this investment? The payback period is 5.5 years. (Round to one decimal place.) If you require a payback period of two years, will you make the movie? No . (Select from the drop-down menu.) Does the movie have positive NPV if the cost of capital is 10.2%? If the cost of capital is 10.2%, the NPV is $ - 1.52 million. (Round to two decimal places.) Enter your answer in the answer box and then click Check Answer. All parts showing Clear All Check Answer

question is for the NPV (third part),if possible show financial calculator steps.

Answer 1

Press CF 2nd CE/C
The calculator will ask to enter each cash flow & then frequency of occurrence.
Accept default frequency of 1 every time.
Press CF then -10.2
Enter
down arrow
4.2
Enter
down arrow (twice)
1.7
Enter
down arrow (twice)
1.7
Enter
down arrow (twice)
1.7
Enter
down arrow (twice)
1.7
Enter
down arrow (twice)
Press NPV
Asked for rate (I = )
Type 10.2
Enter
down arrow
Press CPT