13. During 2020 internationally renowned singer Molly Vanilli is somewhat fed up with singing. A publisher closely related to the music industry offers her to write her memoires from next year onwards and offers her an upfront payment of $1,000,000 now. If she is able to come up with a draft of the first 100 pages in two years time she will receive another payment of $750,000. The book needs to be ready in 4 years. If she succeeds to deliver a publishable manuscript at the end of year 4 she will receive another $2,000,000. In the meantime she cannot give concerts all around the globe which implies an opportunity cost equal to $750,000 per year until and including year 4. Assume a discount rate of 10%. The Net Present Value of this offer comes closest to...

A) $608,000 B) $609,000 C) $610,000 D) $611,000