1. Identify conventional cash flows and decide whether IRR is appropriate 3ill Clinton reportedly was paid 10 million to write his book My Life. The book took three years to write. In the time he spent writing, Clinton could have een paid to make speeches. Given his popularity, assume that he could earn 8 million per year (paid at the end of the year) speaking instead of writing. Assume his cost of capital is 10% per year. A. What is the NPV of agreeing to write the book (ignoring any royalty payments)? What is the IRR of agreeing to write the book (ignoring any royalty ayments)? Should Clinton agree to write the book (ignoring any royalty payments)? Why? 3. Assume that, once the book was finished, it was expected to generate royalties of 5 million in the first year (paid at the end of the year) and these oyalties were expected to decrease at a rate of 30% per year in perpetuity. What is the NPV of the book with the royalty payments