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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:
Cognitive-behavioral
A therapeutic approach that addresses maladaptive behaviors and thought patterns through the integration of cognitive and behavioral techniques.
Nonpharmacologic
Techniques or treatments that do not involve the use of medication, often focusing on lifestyle changes, physical treatments, or psychological strategies.
Panic Attack
An abrupt occurrence of severe panic or distress, including physiological reactions, triggered by a sensed threat rather than any immediate risk.
Misinterpret
To understand incorrectly or to assign the wrong meaning to a communication, situation, or behavior.
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