It Came to Your Attention That Your Great-Grandmother Had Signed

question 117

Multiple Choice

It came to your attention that your great-grandmother had signed a contract pursuant to which she would be paying $5000 for an electronic organ that retails in reputable stores for $3000. Furthermore, the interest being charged is 18%, even though today's rate fell to a 20-year low. This debt is totally out of line with her pension income. It is apparent that she was misled by the door-to-door salesman who came to her place. On these facts, which of the following laws is the most likely to help her?

• A) Undue influence only
• B) Unconscionability only
• C) Misrepresentation only
• D) Non est factum
• E) Both unconscionability and misrepresentation

Understand the concept of discounted cash flow valuation and its relevance to investment appraisal.

Recognize the limitations and applications of Average Accounting Return (AAR) in investment decisions.

Grasp the implications of cash flows timing on project valuation and the role of discount rates.

Learn the significance of salvage value and its effect on project NPV.

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Definitions:

Income

Financial returns received regularly from work or investment sources.

Preferences

Individual choices or priorities regarding products, services, or outcomes based on factors like taste, convenience, and value.

Quantity Supplied

The specific amount of a good or service that producers are willing and able to sell at a particular price.

Tanning Salon

A specialized establishment that provides indoor tanning services through the use of tanning beds or tanning booths.