A decision tree shows a 30 percent probability of $2 million in returns and a 70 percent chance of $1 million in returns. What is the maximum you would invest today in this project if the cash in-flow occurs one year in the future and the discount rate is 10 percent?

Which statement is TRUE about contingencies in purchase offers?

A. They must be reasonable to be enforceable. B. The person benefiting by the contingency can waive it. C. They make the contract illusory. D. If one party can be relieved by the failure of a contingency, the other party can also be relieved from performance should the contingency fail.

A new sales item may be entered when recording a sale on an invoice

Indicate whether the statement is true or false.