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ford is going bankrupt and they have to get rid of 9 9 % of their f 1 5 0 s , two bidders from

ford is going bankrupt and they have to get rid of 99% of their f150s, two bidders from ohio bid on their inventory, bidder 1 bid was bid/f150: P =-1000000$; which is estmiated to be net saving/year per f150=375000$. while bidder 2 was bid/f150: P =-1500000$; which is estimated to be net saving per f150: 700000$ in year 1 decreasing by 100000$/yr. thereafter. estimated life in years =5 the discount rate is 15% per year. so determine the fisherian interest rate- if it exists. A)25.41% B)15% C)16.89% D) NONE OF THESE E)23.57. AFTER figuring that out, which bidder should be selected on the basis of maximimizing future value of those f150s? A) Bidder 2 B) Bidder 1 C) Either Bidder 1 or Bidder 2 D) Reject both bidders.

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