Sam owes $5,000 to the First National Bank for a student loan which will come due on January 1 next year. He has been offered a two-year graduate fellowship, but he will not be able to pay the loan back if he accepts the fellowship. The bank manager tells Sam that if he pays $3,000 now, they will forgive the loan. Should Sam accept the offer?
a. No, because the bank can still sue for the remaining $2,000.
b. No, because the manager's promise is not binding on the bank.
c. Yes, because the early payment of the loan is consideration that makes the bank's promise binding.
d. Yes, because the bank must do whatever the manager says.
c
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Actions, attire, grammar usage, and proofreading all affect the ________ of an employee
A) professionalism B) persuasiveness C) ethics D) appropriateness E) presentation
The system of accounting where revenues are recorded when they are earned and expenses are recorded when they are incurred is called the cash basis of accounting
Indicate whether the statement is true or false
McCall Manufacturing has a WACC of 10%. The firm is considering two normal, equally risky, mutually exclusive, but not repeatable projects. The two projects have the same investment costs, but Project A has an IRR of 15%, while Project B has an IRR of 20%. Assuming the projects' NPV profiles cross in the upper right quadrant, which of the following statements is CORRECT?
A. Each project must have a negative NPV. B. Since the projects are mutually exclusive, the firm should always select Project B. C. If the crossover rate is 8%, Project B will have the higher NPV. D. Only one project has a positive NPV. E. If the crossover rate is 8%, Project A will have the higher NPV.
Winter Wonder Inc. is a leader in producing winter sports equipment, including skis and skates. Recently, the firm decided to expand into the bobsled market and acquired Sleds by Bob Inc. This company produced bobsleds, but its sales had slowed. The managers of Winter Wonder convinced themselves that they were able to manage the business of Sleds by Bob more effectively even though they had no experience in the bobsled market. However, this move backfired and the sale of Sleds by Bob's bobsleds plummeted. Which of the following terms is often used to describe this scenario?
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