2. Based on your calculations in Tab 2, Question 8, which offer should LGI accept for the Bowie plant? Explain why. Be sure to include the concepts of risk and potential return as part of your discussion.

79 B. As part of a larger plan to sell off underperforming assets, LGI is considering selling the Bowie property 81 and using other existing facilities more efficiently. LGI received four preliminary offers from potential buyers for the Bowle 82 property. What is the PV of each offer? 183 PV of each offer (in $ millions) B4 Offer A $102.17 million, paid today 102 17 Offer B $19.85 million per year, to be paid over the next 8 years 114.7 Offer C $201 85 million, to be paid in year 8 108.2 87 Offer D $18.09 million per year, to be paid over the next 7 years and 138.96 a $53.05 million payment In year 8 90 9. From a profit maximizing ppi