8. 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?

PV of each offer (in $ millions)

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