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

question 57

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.
-Assuming that Palin's cost of capital is 10%,then the NPV of her book deal is closest to:

• A)$2.00 million.
• B)$2.20 million.
• C)$3.00 million.
• D)$3.73 million.

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Definitions:

Autonomous

Having the freedom to act independently, making decisions and actions based on one's own authority and principles.

Rational Human Agents

Individuals who are believed to make decisions based on logic, reason, and their own best interests.

Categorical Imperative

A central concept in the moral philosophy of Immanuel Kant, stating that one should act only according to that maxim by which you can also will that it would become a universal law.

Moral Judgment

The process of determining the ethicality or morality of actions, often based on a particular set of criteria or moral principles.