BOTH A & B PLZ IM STUCK :)

= Homework: HW 1 - Chp 7 Question 1, P7-6(similar Part 1 of 2 HW Score: 0% 0 of 6 points Score: 0 of 1 Bill Clinton reportedly was paid an advance of 510.0 on to write this book My Life Suppose the book took three years to write. In the time he spent trainian we been paid to make peeches in his popularity could cam 57 milion a year (paid at the end of the year) peaking instead of writing Assun his cost of capital is 10.2% per you a. What is the NPV of agreeing to write the bochonoring any royalty payment 6. Assure that once the book is finished as expected to generate royartes of 52 million in the first year (ped at the end of the year and reseryales expected to decrease at awe of 30% per year in perpetuity What is book with the royaity payments? a. What is the NPV of ageing to write the book (ignoring any royalty payments The NPV of agreeing to write the book is mhon (Round to three deca place) Enter your wer in the awwer box and the Chan Clear AB Check Help Me Solve This View an Example Get More Help MacBook 25 og 295 80 DII ce SY ge FT F A ! 1 @ 2 $ 4 1 0 % 5 & 7 o 8 6 3 mathxl.com FIN 3603-002 = Homework: HW 1 - Chp 7 Question 1, P7-5 (similar ... Part 1 of 2 HW Score: 79.76%, 4. Score: 0 of 1 Bill Clinton reportedly was paid an advance of $10.0 million to write his book My Life. Suppose the book took three yea could have been paid to make speeches. Given his popularity, assume that he could earn $7.8 million a year (paid at Assume his cost of capital is 10.2% per year. a. What is the NPV of agreeing to write the book (ignoring any royalty payments)? b. Assume that, once the book is finished, it is expected to generate royalties of $5.2 million in the first year (paid at th expected to decrease at a rate of 30% per year in perpetuity. What is the NPV of the book with the royalty payments on ** a. What is the NPV of agreeing to write the book (ignoring any royalty payments)? The NPV of agreeing to write the book is $ million. (Round to three decimal places.) HW 1 -