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?

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.