Which of the Following Is True of a Contract in Which

question 17

Multiple Choice

Which of the following is true of a contract in which the goods were destroyed, of no fault of the buyer or seller, before the title to goods passed to the buyer?

• A) The buyer has to still pay for the destroyed goods.
• B) The seller and buyer are excused from contractual obligations.
• C) The buyer can successfully claim for replacements from the seller.
• D) The seller is obligated to make a new shipment as the previous contract.

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Definitions:

Net Present Value

The variance between cash inflows and outflows' present value over time, utilized to evaluate an investment's profitability.

Working Capital

The gap between a firm's present assets and liabilities, showing how liquid it is in the short run.

Investment Project

An investment project represents a series of cash inflows and outflows aimed at generating a return over time, typically involving the purchase of assets or investment in ventures.

Discount Rate

In DCF evaluations, the applied rate to ascertain the contemporary value of expected future cash inflows.