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Please answer all parts of the question for the upvote and kindly show the working! Bill Clinton reportedly was paid an advance of $100 million
Please answer all parts of the question for the upvote and kindly show the working!
Bill Clinton reportedly was paid an advance of $100 million to write his book My Life Suppose 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 $75 million a year (paid at the end of the year) speaking instead of writing Assume his cost of capital is 9.5% 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 S4 8 milion in the first year (paid at the end of the year) and these royalties are expected to decrease at a rate of 30% per year in perpetuity What is the NPV of the book with the royalty payments? 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) Step by Step Solution
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