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{.}6$ million per year $($paid at the end of the year$)$ speaking instead of writing. Assume his cost of capital is $10\mathrm{.}3\%$ per

year. Assume also that once the book is finished, it is expected to generate royalties of $$4\mathrm{.}6$ million in the first

year $($paid at the end of the year$)$ and these royalties are expected to decrease at $25\%$ per year in perpetuity. The

NPV of the book with the royalty payments is $-$$$2,063,640.$ How many IRRs are there in this problem? Does the IRR

rule work in this case?

Use the graph below to determine how many IRRs there are in this problem.