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7. As part of a larger plan to sell off underperforming assets, LGI is considering selling the Bowie property and using other existing facilities

 

7. As part of a larger plan to sell off underperforming assets, LGI is considering selling the Bowie property and using other existing facilities more efficiently. LGI received four preliminary offers from potential buyers for the Bowie property. What is the PV of each offer? Offer A $102.17 million, paid today Offer B $19.85 million per year, to be paid over the next 8 years Offer C $201.88 million, to be paid in year 8 Offer D $18.09 million per year, to be paid over the next 7 years and a $53.05 million payment in year 8 PV of each offer (in $ millions) $102,170,000.00 $113,596,140.33 $108,184,827.59 $122,258,742.57 8. From a profit maximizing point of view, which offer should LGI accept? D

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