Question: Kindly solve for part a and part b. Bil Cinton reportedly was paid $15.0 milion to write his book My Life. The book took three

Kindly solve for part a and part b.

Bil Cinton reportedly was paid $15.0 milion to write his book My Life. 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 eam 58.5 milion per year (paid at the end of the year) speaking instead of writing Assume his cost of capital is 10.4% per year, a. What is the NPV of agreeing to write the book (ignoring any royalily payments)? b. Assume that, once the book is finished, it is expected to generate royalties of $4.8 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? a. What is the NPV of agreeing to white the book (egnoring any royalty payments)? The NPV of agreoing to write the bock (ignoring any royalty payments) is 1 (Round to the nearest doliar.)

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