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In March,Kemal entered into an agreement with Bernadette whereby Kemal would rent Bernadette his cottage for one week in July.In May earlier that same year,Kemal negligently caused significant fire damage to the cottage while roasting marshmallows over a roaring fire in the cottage fireplace.As a result,the cottage was inhabitable for six months.Kemal can successfully assert that this agreement is frustrated.
Net Cash Flows
The net amount of cash and cash equivalents moving into and out of a business within a specified period.
Payback Method
A capital budgeting technique that calculates the length of time required to recoup the initial investment cost through the net cash flows it generates.
Cash Flow
Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business.
Economic Life
The expected period of time during which an asset remains useful to the owner for generating income or other benefits.
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