Please use excel formulas.

Problem 7-5 Bill Clinton reportedly was paid $10 million to write his book Mv Life. Suppose the book took three years to write. In the time he spent writing, Clnton could have been paid to make speeches. Given his popularity, assume that he could earn $8 milion per year (paid at the end of the year) speaking instead of writing. Assume his cost of capital is 10% per year a. What is the NPV of agreeing to write the book (ignoring any royalty payments)? Assume that, once the book is finished, it is expected to generate royalties of S5 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 m perpetuity. What is the NPV of the book with the royalty payments? Advance payment for book Foreg Cost of capital Number of years S10,000,000 S8,000,000 10% one speaking fees 10 12 a. What is the NPV of agreeing to write the book (ignoring any royalty payments)? 14 15 16 17 PV of losing the speaking fees NPV of book deal b. Assume that, once the book is finished, it is expected to generate royalties of $5 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? 18 19