Bill Clinton reportedly was paid $$$$9\mathrm{.}5$ million to write his book My Life. The book took three years to write. In the time he spent$$ writing, Clinton could have been paid to make speeches. Given his$$ popularity, assume that he could earn $$$$8\mathrm{.}1$ million per year$($paid at the end of the$$ year$)$ speaking instead of writing. If his cost of capital is $10\mathrm{.}3\%$ per$$ year, then the NPV of agreeing to write the book$($ignoring any royalty$$ payments$)$ is negative $ $10$ comma $537$ comma $587.$ How many IRRs are there in this$$ problem? Does the IRR rule give the right answer in this$$ case? $($Note$$: Consider the upfront payment as a positive cash flow and the opportunity cost of missed speaking fees as negative cash$$ flows.$)$

Question content area bottom

Part $1$

The IRR is

$$

enter your response here$\%.($Round to two decimal$$ places.$)$

Part $2$

How many IRRs are there in this$$ problem? $($Select the best choice$$ below.$)$

A$.$

Three IRRs

B$.$

One IRR

C$.$

Two IRRs

D$.$

Four IRRs

Part $3$

Does the IRR rule give the right answer in this$$ case?$($Select the best choice$$ below.$)$

A$.$

$$Yes$,$ because the NPV is positive.

B$.$

$$Yes$,$ because the IRR$(66\mathrm{.}93\%)$ is greater than the cost of capital.

C$.$

$$No$,$ because the NPV is negative $($negative $ $10$ comma $537$ comma $587),$ and therefore the IRR gives the wrong answer.

D$.$

$$No$,$ because the IRR is negative.

The IRR is$($Round to two decimal places.$)))$