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Based on your knowledge of investment decision rules, you are considering whether you should invest in Project B. Which investment decision rule could you apply?

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Based on your knowledge of investment decision rules, you are considering whether you should invest in Project B. Which investment decision rule could you apply? Year 0 Year 1 Year 2 Year 3 Year 4 Project Cash Cash Flow Cash Flow Cash Flow Cash Flow Cost of capital Flow A -100 40 -50 60 N/A .15 B -73 30 30 30 30 .15 NPV IRR O NEITHER OBOTH You are offered a $16 million advance to write a book. The book will take you one year to write. You could have earned $12 million over the year (paid at the end of the year) if you do not write the book, but instead, give speeches. Assuming that your cost of capital is 10%, what is the NPV of your book deal? O $3.73 million O $5.09 million O $3.18 million O $2.00 million

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