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Assume Michelle Obama reportedly was paid $12 million to write her book Becoming. The book took three years to write. In the time she spent
Assume Michelle Obama reportedly was paid $12 million to write her book Becoming. The book took three years to write. In the time she spent writing, Obama could have been paid to make speeches. Given her popularity, assume that she could earn $7.00 million per year (paid at the end of the year) speaking instead of writing. Suppose Michelle's opportunity cost of capital is 13%. What is the IRR of the case, and should she have written the book according to the NPV investment rule? IRR is -34% and she shouldn't have written the book. IRR is 34% and she shouldn't have written the book. IRR is 34% and she should have written the book. IRR is -$4.01M and she shouldn't have written the book
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