ques 6

QUESTION 6: John Howard reportedly was paid $430 000 to write his book Lazarus Rising The book took three years to write. In the time he spent writing, Howard could have been paid to make speeches. Given his significance as Australia's second-longest serving Prime Minister, assume that he could earn $280 000 per year (paid at the end of the year) speaking instead of writing. If his cost of capital is 9.9% per year, then the NPV of agreeing to write the book (ignoring any royalty payments) is -$267 546. How many IRRS are there in this problem? Does the IRR rule give the right answer in this case? The IRR is %. (Round to two decimal places.) QUESTION 7