Sarah Palin reportedly was paid a $11 million advance to write her book Going Ro

Question

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. Assume that she was able to write the book while simultaneously fulfilling her media commitments of appearing on TV news as a political commentator and give speeches.


The IRR of Palin's book deal is closest to:
A)27.25% B)37.50% C)-37.50% d)-27.25%

Explanation / Answer

I assume the question is actually that she is NOT able to simultaneously fulfill both obligations, otherwise the question doesn't make sense.

 

If that's the case: d.

If it's the case that she could do both, how to find the answer is beyond me.

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