To be unconditional, a promise to pay cannot refer to another document

Given the following cash flows for a capital project, calculate its payback period and discounted payback period. The required rate of return is 8 percent.

Year 0 1 2 3 4 5 Cash flow ?50,000 15,000 15,000 20,000 10,000 5,000 The discounted payback period is: a. 0.16 years longer than the payback period. b. 0.51 years longer than the payback period. c. 1.01 years longer than the payback period.

Liquidated damages, in which the parties agree on the amount of damages to be paid to the seller if the buyer breaches the contract, are a legally required part of a contract.

a. true b. false