Brutus reportedly was paid $10 million to write his book My…

Brutus reportedly was paid $10 million to write his book My Life. He was paid when he started to write the book. The book took three years to write. In the time he spent writing, Brutus could have been paid to make speeches. Given his popularity, assume that he could earn $8.5 million per year (paid at the end of the year) speaking instead of writing. Assume his cost of capital is 10% per year. Assume that, once the book was finished, it was expected to generate royalties of $5.5 million in the first year (paid at the end of the year) and these royalties were expected to decrease at a rate of 30% per year in perpetuity. What is the NPV of the book with the royalty payments? Calculate NPV when he agrees to write the book.   (Hint: The first royalty will be paid at the end of the 4th year after agreeing to write the book)

Brutus construction company takes a loan of $1,665,000 to co…

Brutus construction company takes a loan of $1,665,000 to cover the cost of a new grader. If the interest rate is 7.50% APR, and payments are made monthly for five years, what percentage of the outstanding principal does the company pay in interest each month?

Removing any one of the three critical factors that are esse…

Removing any one of the three critical factors that are essential to the infectious process will disrupt a disease’s communicability. The model shows the three critical factors. There are three examples of ways that a child or a teacher can disrupt the process to prevent diseases from spreading in the classroom. Match the example with the part of the process that it disrupts, starting with the host, then the method of transmission, and finally the pathogen. [host1] [method2] [pathogen3]

Armenian Chess Association is investing in a project that re…

Armenian Chess Association is investing in a project that requires $27,000 initial investments and is expected to yield $39,600 in a year. They decide to finance the project with combination of bonds, bank loans, swaptions, and equity. The debt structure is below: Lines of credit: $5,000 Term loans: $3,000 Callable bonds: $5,000 Convertible bonds: $4,000 Swaptions: $3,000 The rest is raised by issuing equity. What is the value of the firm if WACC is 10%?