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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Self-Sufficient

The ability to satisfy one's own needs without reliance on others.

Vocational Institute

An educational establishment that provides specialized training and instruction in particular trades or careers.

Store Managers

Individuals responsible for overseeing the daily operations of a store, including staff management, inventory control, and customer service.

Publishers

Companies or individuals that prepare and issue books, journals, music, or other works for sale.