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Bill Clinton reportedly was paid an advance of $ 10.0 million towrite his book My Life. Suppose the book took three years to write.In the time he spent? writing, Clinton could have been paid to makespeeches. Given his? popularity, assume that he could earn $ 7.5million a year? (paid at the end of the? year) speaking instead ofwriting. Assume his cost of capital is 9.5 % per year.a. What is the NPV of agreeing to write the book? (ignoring anyroyalty? payments)?b. Assume? that, once the book is? finished, it is expected togenerate royalties of $ 4.9 million in the first year? (paid at theend of the? year) and these royalties are expected to decrease at arate of 30 % per year in perpetuity. What is the NPV of the bookwith the royalty? payments?