Sidu Sells His Expensive Watch to Sylvester in Return for Sylvester's

question 42

True/False

Sidu sells his expensive watch to Sylvester in return for Sylvester's almost new mountain bike. The watch stops working immediately and the jeweller tells Sylvester that it is not repairable. Under the Sale of Goods Act, Sylvester is entitled to the return of his bike provided he gives Sidu back the watch.

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Definitions:

IRR

Internal Rate of Return; a financial metric used to evaluate the profitability of a potential investment, calculating the discount rate at which the net present value of costs and benefits equals zero.

Cost of Capital

The necessary rate of earnings a firm must obtain from its investments to preserve its market worth and secure capital.

Initial Investment

The amount of money invested at the start of a project or business venture to get it off the ground.

Positive Future Cash Flows

The expectation or projection of an increase in the amount of money flowing into a company over a period of time, typically resulting from operations, investments, or financing activities.