Which of the Following Statements (If Later Established as Untrue)would

question 107

Multiple Choice

Which of the following statements (if later established as untrue) would constitute a misrepresentation defense to contract formation?

• A)"You are going to love this house as we have."
• B)"This farm's well is adequate for household, ranch, and crop needs."
• C)"The school system here is very fine."
• D)"Our buyers are the happiest customers around."

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Definitions:

Cash Inflows

Money received by a business from its operational, investment, and financing activities.

Internal Rate

Often related to the internal rate of return (IRR), it's a metric used in financial analysis to estimate the profitability of potential investments.

Time Value

The theory that money today is more valuable than the same quantity in the future, due to its potential to accumulate additional value.

Profitability Index

A financial tool that calculates the ratio between the present value of cash inflows and the present value of initial investment, often used in capital budgeting.