Fact Pattern 8-3

question 12

Multiple Choice

Fact Pattern 8-3
Dag and Enita are in an auto accident.Dag offers Enita $2,000 if she promises not to pursue her potential legal claim against him.Enita agrees.Later,Enita discovers that it will cost $1,500 to repair her car and $4,000 to cover her medical expenses for a latent injury.
-Refer to Fact Pattern 8-3.In Enita's suit against Dag to recover her re?pair and medical expenses,Enita will most likely recover

• A)half the amount to pay those costs over what Dag already paid her.
• B)nothing.
• C)the estimated amount to pay those costs and any other liability.
• D)the exact amount to pay those costs and no more.

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Definitions:

WACC

Weighted Average Cost of Capital; a calculation of a firm's cost of capital where each category of capital is proportionately weighted.

Fixed Order Interval

A replenishment method where orders are placed at fixed intervals, ensuring a periodic review and stock refill.

EOQ Model

Economic Order Quantity Model, an inventory management tool used to determine the optimal order size that minimizes total inventory costs including holding and ordering costs.

SKUs

Stock Keeping Units, a unique identifier for each distinct product and service that can be purchased.