Will and Kendrick Live in a State That Requires That

question 56

Multiple Choice

Will and Kendrick live in a state that requires that contracts involving transactions over $500 be in writing.If they enter a verbal agreement to buy a car for $1,500,this contract is

• A) valid.
• B) void.
• C) voidable.
• D) unenforceable.

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Definitions:

Old Equipment

Refers to machinery or technology that has become outdated or has surpassed its effective service life but may still be in use.

Salvage Value

The projected remaining worth of an asset once it has reached the end of its operational lifespan.

Internal Rate

Refers to the internal rate of return (IRR), which is a discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Discount Rate

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