What is the npv of agreeing to write the book?

Assignment Help Business Management
Reference no: EM132564647

Bill Clinton reportedly was paid $ 15.0 million 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 earn $ 8.9 million per year? (paid at the end of the? year) speaking instead of writing. Assume his cost of capital is 10.3 % 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 $ 5.1 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?

Reference no: EM132564647

Questions Cloud

How much will you have accumulated : How much will you have accumulated, if you annually invest $3000 into an IRA at 12% interest compounded bi-annually for: a. 10 year b. 20 years
BKAT2013 Principles of Taxation Assignment : BKAT2013 Principles of Taxation Assignment Help and Solution, Universiti Utara Malaysia - Assessment Writing Service
Determine the expected return on equity for a firm : Determine the expected return on equity for a firm with a WACC of 12 percent, $500,000 in 9 percent debt, $800,000 in equity
Identify unfavorable variance on gas and oil expense : Identify and describe the most likely cause of the $900 unfavorable variance on gas and oil expense and explain the basis for your belief.
What is the npv of agreeing to write the book? : Bill Clinton reportedly was paid $ 15.0 million to write his book My Life. The book took three years to write. In the time he spent? writing, Clinton could have
How many defective units were produced : How many defective units were produced? Compute manufacturing cycle efficiency (MCE). Compute process productivity. Compute process quality yield.
What was the league of friendship : What was the League of Friendship? Explain its role and impact on the Articles of Confederation in American history.
Discuss the three costing methods of process costing : Discuss the three costing methods of job order costing, process costing, and activity-based costing. and Compare and contrast.
Why companies form or join intra-industry strategic supplier : Research on Toyota and come up with conclusive arguments how Toyota optimises its value chain and achieved competitive advantage.

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd