Part 1: Assume that bids at auction must be offered in $100,000 units, e.g., $100,000 $12,100,000 (assume that if the bids are tied, Drumpf will lose the auction and Cruise will get the property, e.g., if both bid $8.0 million, Cruise wins; if Drumpf bids $8.1 and Cruise bids $8.0, then Drumpf wins). (1A) What should she bid to maximize her expected "bottom line" net income from the project? (net income = expected income from sales - development cost - bid to acquire the property)? (1B) Should she develop at the premium level or the standard level (to maximize expected value)? (1C) What is the expected net income to Drumpf, if she follows your strategy?