A Small Project Has a Cost of $12,000 to Implement

question 25

Multiple Choice

A small project has a cost of $12,000 to implement and is expected to have annual cash flows of $3,000.What is its payback period?

• A)One year
• B)Two years
• C)Three years
• D)Four years

Distinguish between liquidated and unliquidated debts and their implications for consideration.

Understand the legal significance of nominal consideration and its role in contract law.

Assess the legal enforceability of promises in employment contracts and gift promises.

Recognize when consideration is not required for a contract to be legally binding.