A Contract into Which Parties Enter but in Which One

question 80

Short Answer

A contract into which parties enter but in which one or both of the parties can choose not to perform their contractual obligations is said to involve ________ promises.

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Definitions:

Future Outcomes

Possible events or results that have not yet occurred and may be influenced by current actions or decisions.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows.

Net Present Value

The difference between the present value of cash inflows and outflows over a period of time, used in capital budgeting to assess profitability of investments.

Cash Inflows

Money received by a business from its operational, financing, or investing activities.