Jerry Has Made an Offer to Contract with Cosmo

question 36

Multiple Choice

Jerry has made an offer to contract with Cosmo.If Cosmo returns to Kelowna from Brandon before August 31,he can live in Jerry's spare room for four months without paying rent.Cosmo proposes for an option on the offer until August 1,which Jerry accepts.In July,Jerry realizes his other friend,George,is willing to move in and pay twice what Cosmo will pay.Therefore,Jerry wants to revoke the offer.Which of the following is true?

• A)Jerry cannot revoke the offer until August 2.
• B)Jerry can revoke the offer because George has offered higher consideration.
• C)Jerry can only revoke the offer if he can prove Cosmo is insane.
• D)Jerry must wait until September 1,when the offer has lapsed.
• E)Jerry can only hope that Cosmo rejects the offer.

Learn about the internal rate of return method and its application in analyzing capital investment proposals.

Identify the role of uncertainty and sensitivity analysis in capital budgeting.

Understand the calculation and implications of cash payback periods for capital investments.

Grasp the concept of present value and apply it to evaluate capital investment proposals.

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Definitions:

Services

Economic activities that provide intangible products, such as healthcare, education, and financial services, to consumers.

Durable Goods

Items or products that are expected to last for several years under normal use, such as appliances and vehicles.

Nondurable Goods

Items with a short life span which are consumed or used up quickly, such as food and most consumer packaged goods.

Services

Intangible products such as healthcare, education, and financial advice that are consumed at the point of sale and do not result in ownership of any physical or digital goods.