Use the Following Information to Answer the Question(s)below

question 71

Multiple Choice

Use the following information to answer the question(s) below.
Sarah Palin reportedly was paid a $11 million advance to write her book Going Rogue.The book took one year to write.In the time she spent writing,Palin could have been paid to give speeches and appear on TV news as a political commentator.Given her popularity,assume that she could have earned $8 million over the year (paid at the end of the year) she spent writing the book.
-Assume that once her book is finished,it is expected to generate royalties of $5 million in the first year (paid at the end of the year) and these royalties are expected to decrease by 40% per year in perpetuity.Assuming that Palin's cost of capital is 10% and given these royalties payments,the NPV of Palin's book deal is closest to:

• A)$3.75 million.
• B)$12.20 million.
• C)$13.00 million.
• D)$13.75 million.

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Definitions:

Patient's Identity

Information that uniquely identifies an individual patient, including name, birth date, and medical history, crucial for providing personalized and confidential healthcare.

Aggressive Communication

A style of communication characterized by assertiveness taken to an extreme, often at the expense of others' feelings and opinions.

Passive Communication

A communication style where individuals fail to express their feelings or needs, often leading to miscommunication and conflict.