Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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2. The Asset Privatization Trust had put up for sale a machine tools manufacturing plant. There
were two bidders with the following proposals (a) Bidder A offered P10M payable 20% down
payment, the balance payable P1M annually for 8 years, (b) Bidder B offered P9M, payable P2M
down payment, the balance payment payable P 0.5M semi-annually for 7 years, which bid is
more beneficial to APT, if money is worth 10% effective?
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Transcribed Image Text:2. The Asset Privatization Trust had put up for sale a machine tools manufacturing plant. There were two bidders with the following proposals (a) Bidder A offered P10M payable 20% down payment, the balance payable P1M annually for 8 years, (b) Bidder B offered P9M, payable P2M down payment, the balance payment payable P 0.5M semi-annually for 7 years, which bid is more beneficial to APT, if money is worth 10% effective?
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