Answer:
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.
