Q No.3: XYZ, Inc., is considering investing in USA in mining business for next five years against a bid value. The mine is expected to produce $6 million in cash to XYZ Inc. No other cash flows will occur, as the government will reimburse the company for all costs. If XYZ Inc., requires a nominal annual return of 20 percent, what is the maximum bid price it should make for the participation right if interest is compounded(a) annually? (b) semi annually? Which is better to consider and why