Farmer Jones bought his farm for $75,000 in 1975. Today the farm is worth $500,000, and the interest rate is 10 percent. ABC Corporation has offered to buy the farm today for $500,000 and XYZ Corporation has offered to buy the farm for $530,000 one year from now. Farmer Jones could earn net profit of $15,000 (over and above all of his expenses) if he farms the land this year. What should he do?

Sell to ABC corporation.  

Explanation:

Here we have two options which is either sell the farm to ABC for $500,000 today or sell it to XYZ for $530000 receivable after a year.

Option 1. Selling to ABC

The amount received                                 $500,000

Investing it at 10%                                         $50,000

Total Value of Investment at year end      $550,000

Now Option 2. Selling to XYZ

The amount received                                  $530,000

Total Value of Investment at year end      $530,000

As the benefit to sell ABC is more than XYZ corporation hence its better to sell the farm to ABC corporation.

(75years ,i believe is the correct answer.good luck

there was no passage listed but using the process of elimination i'd say it was d. the high economy would do the opposite. i don't see how low prices would affect it. high unemployment is possible but i feel d is the better answer.