Your advance on a book deal is $$600,000,$ payable today. Unfortunately, your

publisher insists that you quit your $$240,000$ per year job for $3$ years so you can focus on the

book. Your discount rate is $12\%.$

$$ What is the NPV of this proposal?

$$ Should you accept this deal or not?

$$ Explain how you use IRR in your decision analysis.

$$ Draw a number line.

$$ Do you have any reservations about this decision? Why or why not?