Mio Automobile is considering a two-year joint venture with Rapidbus to produce small buses (capable of carrying 40-50 passengers). Mio Automobile will have to invest $ 200 million for a 50% share of the venture. This project will produce 10 buses each year in the next two years. A customer has signed a contract to buy them for $60 million each for the first year, and to renew the contract based on the market price after one year. Therefore, the contract sale price per unit after one year can be

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a Investment 200 Million Debt 50 ... View the full answer