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Questions: 1. Suppose you had to advise the Mexican government on which bid to accept. Analyze the financial implications of the competing bids and

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Questions: 1. Suppose you had to advise the Mexican government on which bid to accept. Analyze the financial implications of the competing bids and develop the criteria you would use to select the winning bid. You can assume that the Mexican government uses the U.S. $ as a currency of reference given its oil based foreign exchange receipts. As a rough guide to your calculations you can use the rates quoted below. 2. Assume now that you have to advise John Vink of Maxwell. You have to suggest ways of improving Maxwell's chances of obtaining the bid. Discuss the advantages and disadvantages of the following two "solutions": (a) (b) Submit a bid identical to the Swiss-German consortium (but perhaps for a slightly lower amount). Add a clause to the bid that allows the Mexican Government to pay either $21 million or DM 58.61 million on the stipulated dates. In particular, analyze the

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