which bid is more beneficial to APT, if money is worth 10% effective?

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter26: Capital Investment Analysis
Section: Chapter Questions
Problem 2CMA: Staten Corporation is considering two mutually exclusive projects. Both require an initial outlay of...
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The Asset Privatization Trust had put up for sale a machine tools manufacturing plant. There were two bidders with the following proposals (a) Bidder A offered P10M payable 20% down payment, the balance payable P1M annually for 8 years, (b) Bidder B offered P9M, payable P2M down payment, the balance payment payable P 0.5M semi-annually for 7 years, which bid is more beneficial to APT, if money is worth 10% effective?
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