Time Value of Money Problem On January 1, Year 1, Company ABC received an offer from a competitor to buy their equipment. The competitor would pay ABC $150,000 every year for the next 3 years. Additionally, the competitor would pay ABC a lump sum of $250,000 at the end of year 3. The equipment is worth $600,000 today, and the market interest rate is 10%.
Required:
Should ABC accept the off?
