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George Clooney has been offered $14 million (to be paid in 1 year from now) for starring in Batman 4, Batman 5, and Batman 6.

George Clooney has been offered $14 million (to be paid in 1 year from now) for starring in Batman 4, Batman 5, and Batman 6. If Clooney accepts this offer, he will have to forego acting in Oceans 14, Oceans 15, and Oceans 16 that would have paid him $5 million each (in 2, 3, and 4 years from now). Clooney assumes his personal cost of capital is 10%. Based on this information, the NPV today of Clooneys decision to accept Batman films is:

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$14.00 million

1.42 million

$1.56 million

$12.72 million

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