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50 g Homer is in contract negotiations with a publishing house for his new autobiography. He has two options. With Lenny's option, he would receive

50 g Homer is in contract negotiations with a publishing house for his new autobiography. He has two options. With Lenny's option, he would receive $500,000 up front, and then receive royalties of $50,000 at the end of each year for the next 10 years. With Carl's option, he can receive $800,000 up front and also a one-time bonus of $10,000 in Years 1 and 2. Which of the two options should he accept? The discount rate for both options is 10%. A. IRR for Lenny= 12.7%; IRR for Carl= 10.3%; Choose Lenny's Option B. IRR for Lenny= 11.9%; IRR for Carl= 13.7%; Choose Carl's Option TS C. NPV for Lenny= -$ 192,771; NPV for Carl= -$782,644; Choose Lenny's Option 2. D. NPV for Lenny= $ 807,489; NPV for Carl= $ 817,355; Choose Carl's Option

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