(Table: Payback Period) If Management Uses the Net Present

question 21

Multiple Choice

(Table: Payback Period) If management uses the net present value method and requires a two-year period to reach the payback period, then management will ____ the investment because the total benefits over the first two years are ____.

• A) approve; less than $5,000
• B) not approve; less than $5,000
• C) approve; greater than $5,000
• D) not approve; greater than $5,000

Understand the statutory requirements under the statute of frauds for different types of contracts.

Identify the concepts of intended, incidental, and donee beneficiaries within contracts.

Recognize valid contract assignments and the role of assignees.

Distinguish between oral and written contracts and understand their enforceability.

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Definitions:

Nominal

Denotes categories without numerical importance, used to describe data that represents names or labels.

Ordinal

Pertaining to a type of data or scale that shows an order or rank among values, where the intervals between values are not necessarily consistent.

Pie Chart

A pie chart is a circular graph divided into sectors, each representing a proportion of the total. It is used to visualize the relative sizes of parts of a whole.

Frequency

In statistics, it refers to the count of how often each value of a set of data occurs; in waves, it refers to the number of occurrences of a repeating event per unit of time.