Answer:
Yes, it should be purchased
Explanation:
The computation is shown below;
Net present value = $9,000 ÷ 1.12 + $7,000 ÷ 1.12^2 + $5,000 ÷ 1.12^3 + $3,000 ÷ 1.12^4 - $14,000
= $5,081.53
As we can see that the net present value comes in positive so sigma should purchased the digger
Therefore the same would be considered and relevant
Answer:
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Answer:
In this situation:
c. Discount must compensate Contractors for its lost profit.
Explanation:
- The option A is not correct in our situation as there is not agreement of local zoning authority with either the contractors or Discount Retail, Inc. so they are not breaching any contract.
- The option b is not correct as contract is not discharged that mean the contract is not ended.
- The option c is correct as now Discount Retail Inc. must compensate the contractor for its profit loss as they will not be building the store and they will have experienced a loss.
- Contractors are in breach of contract as the zoning authority has changed the law not to build the store at that location but not the contractors.
Answer: d. the consideration from Darla to Edward is the promise of $6,000 subject to a condition.
Explanation:
Based on the information given, we should note that if Edward agrees to Darla's offer, the consideration from Darla to Edward is the promise of $6,000 subject to a condition.
This is because Darla offered to pay Edward the $6,000 for his car, as long as she gets that much from her uncle's estate, which is under probation. In the case whereby she doesn't get up to $6000, then she won't be bake to buy the car for $6000.