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

question 69

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)$3.75 million

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Definitions:

Glycogen

A multibranched polysaccharide that serves as a form of energy storage in animals and fungi.

Glucose

A simple sugar that is an important energy source in living organisms and a component of many carbohydrates.

Blood Alcohol Concentration

The concentration of alcohol in a person’s bloodstream, expressed as a percentage, which can affect one's physical and mental faculties.

Tarry Feces

Refers to stool that is dark and sticky, often resembling tar, which can indicate gastrointestinal bleeding.