Professor Gene Fama, scratch golfer, Nobel Laureate and

financial economist at University of Chicago, recently

accepted the following deal to write an introductory

finance textbook:

He took an up front payment of $$1,000,000$ and was

expected to deliver a completed text within three years.

Prof. Fama figures that based on his consulting rates it

will cost him $$500,000$ a year to complete the book. If

current interest rates are $10\%,$ based on the IRR method

what should he have done? What about the NPV

method? what is the irr