In an Enforceable Agreement, a Promise Itself Is Adequate Consideration

question 2

True/False

In an enforceable agreement, a promise itself is adequate consideration when it represents something of value.

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Definitions:

Discounted Payback

A capital budgeting method that calculates the time needed to recoup investment costs, taking the time value of money into account.

Positive Cash Flows

The situation where a company's cash inflows exceed its cash outflows, indicating financial strength and the ability to finance operations, debt, and investments.

NPV

Net Present Value, a method used in capital budgeting to assess the profitability of an investment or project, calculating the difference between the present value of cash inflows and outflows.

Required Return

Required return is the minimum profit or gain needed from an investment to make it worthwhile, considering the risk involved and the opportunity cost of forgoing other investments.