Bob Signed a Contract to Donate to a Charity Every

question 1

Multiple Choice

Bob signed a contract to donate to a charity every month. He included a clause that the contract would be terminated if the charity did not function properly. What restriction has Bob established in this contract?

• A) commercial impracticability
• B) condition precedent
• C) condition subsequent
• D) novation

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Definitions:

Mutually Exclusive Projects

Investment projects where the acceptance of one negates the possibility of accepting another.

Internal Rate Of Return

A measure employed in evaluating financial returns to gauge the potential profitability of investments.

Discount Rate

The interest rate used to discount future cash flows to their present value, reflecting the time value of money and risk.

Profitability Index (PI)

The profitability index is a calculation used to assess the relative profitability of an investment, based on its present value of future cash flows per unit of investment.