4. George Clooney has been offered $14 million (to be paid in one payment 1 year from now) for starring in Batman 4, Bat

[answerhappygod]

4. George Clooney has been offered $14 million (to be paid in
one payment 1 year from now) for starring in Batman 4, Batman 5,
and Batman 6. If Clooney accepts this offer, he will have to forego
acting in Ocean’s 14, Ocean’s 15, and Ocean’s 16 that would have
paid him $5 million each (in 2, 3, and 4 years from now). Clooney
assumes his personal cost of capital is 10%. Based on this
information, the NPV today of Clooney’s decision to accept Batman
films is:
A) $1.42 million B) $1.56 million C) $12.72 million D) $14.00
million