Sierra Bikes,Inc

question 6

Multiple Choice

Sierra Bikes,Inc. ,and Tess enter into a contract for the sale of a mountain bike.Sierra,a merchant who deals in goods of the kind sold,makes implied and express warranties in connection with the sale.The Magnuson-Moss Warranty Act,which applies to the warranty,attempts to prevent deception in warranties by

• A)displacing the UCC as the primary source of warranty rules.
• B)making warranties easier to understand.
• C)prohibiting disclaimers of warranties.
• D)requiring sellers to give written warranties for consumer goods.

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Definitions:

Capital Budgeting

A decision-making process used to evaluate potential expenditures or investments that are significant in amount. It involves the assessment of the future cash inflows and outflows to determine whether the return meets a set benchmark.

After-Tax Discount Rate

The discount rate used in capital budgeting that takes into account the effects of taxes on the project's cash flows.

Income Tax Rate

The portion of an individual's or corporation's income that goes to taxes.

Straight-Line Depreciation

A technique for segmenting the cost of a material asset over its life in even annual segments.