2 multiple choice questions. can you please GIVE AN EXPLANATION for your answers. Thank you

1. Which of the following transfer prices is the least valid economically? a) Market-based transfer prices b) Negotiated transfer prices c) Dual based transfer prices d) Cost-based transfer prices 2. An automotive dealership, with a book value of $3,000,000 and total assets of $5,000,000, has a long history of earning 18%. Last year, the company earned $900,000. The owner is considering acquiring another dealership in a nearby town. If the expansion increase income by 50%, what is the maximum amount of investment the owner can make in the new dealership in order to maintain his desired 18% return on investment? a) $1,350,000 b) $9,000,000 c) $3,000,000 d) $2,500,000