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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
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?
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