Bill Clinton reportedly was paid an advance of $ $10$ 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 $ $7\mathrm{.}56$ million a year$($paid at the end of the$$ year$)$ speaking instead of writing. Assume his cost of capital is $9\mathrm{.}2\%$ per year.

a$.$ Based on the above cash$$ flows, how many IRRs does the opportunity$$ have? Does the IRR rule give the right answer in this$$ case?

b$.$ Assume now that once the book is$$ finished, it is expected to generate royalties of $ $4\mathrm{.}95$ million in the first year$($paid at the end of the$$ year$)$ and these royalties are expected to decrease at $30\%$ per year in perpetuity. How many IRRs are there in this$$ case? Does the IRR rule work in this$$ case?