James and Kay Enter into a Contract for the Sale

question 56

Multiple Choice

James and Kay enter into a contract for the sale of a bicycle,but Kay later refuses to deliver the goods. James asks a court to order Kay to perform as promised. Ordering a party to perform what was promised is

• A)an equitable remedy.
• B)an unenforceable demand.
• C)an action.
• D)beyond the court's authority.

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Definitions:

Present Value

The present value of a future amount of money or a series of cash flows, calculated using a given interest rate.

Annuity

A finance-related product designed to issue a predetermined series of payouts to an individual, typically aimed at serving as an income source for retirement.

Net Present Value

A calculation that compares the present value of cash inflows to the present value of cash outflows over a period of time, used in capital budgeting to assess profitability of investments.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment or to compare the efficiency of several different investments.