https://www.chegg.com/homework-help/corporate-finance-3rd-edition-chapter-7-problem-5p-solution-9780132992473

Hi! Can't understand the logics of calculating the NPV here.

First, why the calculated NPV of writing the book is positive while BC is losing money on not giving lectures (he is writing a book)? I'd count as: discounted Cash Flow of lectures (negative, as this money is "lost") plus discounted Cash for book payment. And we are receiving a negative 12.4 mln for this project.

Second, assuming that logics in solution correct, and I'm wrong, why the cash flow of book payment (10 mln) is not discounted, as it happens 3 years later?

Thank you in advance, Nikita

5. Bill Clinton reportedly was paid $10 million to write his book My Way. The book took three years to write. In the time he spent writing, Clinton could have been paid to make speeches. Given his popularity, assume that he could earn $8 million per year (paid at the end of the year) speaking instead of writing. Assume his cost of capital is 10% per year. a. What is the NPV of agreeing to write the book (ignoring any royalty payments)? b. Assume that, once the 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 at a rate of 30% per year in perpetuity. What is the NPV of the book with the royalty payments