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A large multinational decides to expand its portfolio of companies and enter the automobile sector through the purchase of an automaker. After a previous selection,

A large multinational decides to expand its portfolio of companies and enter the automobile sector through the purchase of an automaker. After a previous selection, the multinational must decide between two automakers with similar global position. Automaker 1 provided the following profit forecasts (in billions of dollars) for the next 5 years, from year 1 to year 5: $7.4, $10.6, $12.0, $8, 6 and $8.6. Similarly, Automaker 2 provided the following profit forecasts for the next 5 years: $4.9, $6.9, $8.5, $10.8, and $11.3. The multinational company does not accept to invest in any asset that pays an interest rate lower than 10% per year. Knowing that the assembler with the lowest market value will have preference in the acquisition, and that the market value is given by the sum of discounted future profits, what is the value of the assembler that will have preference in the acquisition?

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