Reference no: EM131352358
Contract analysis scenario two—remedies determination: Mundo manufactures printing presses. Extra, a publisher of a local newspaper, had decided to purchase new presses. Rep, a representative of Mundo, met with Boss, the president of Extra, to describe the advantages of Mundo's new press. Rep also drew rough plans of the alterations that would be required in Extra’s pressroom to accommodate the new presses, including additional floor space and new electrical installations, and Rep left the plans with Boss.
On December 1, Boss received a letter signed by Seller, a member of Mundo's sales staff, offering to sell the required number of presses at a cost of $2.4 million. The offer contained provisions relating to the delivery schedule, warranties, and payment terms but did not specify a particular mode of acceptance of the offer. Boss immediately decided to accept the offer and telephoned Seller's office. Seller was out of town, and Boss left the following message: "Looks good. I'm sold. Call me when you get back so we can discuss details."
Using the rough plans drawn by Rep, Boss also directed that work begin on the necessary pressroom renovations. By December 4, a wall had been demolished in the pressroom, and a contract had been signed for the new electrical installations.
On December 5, the President of the United States announced a ban on foreign imports of computerized heavy equipment. The ban removed—from the American market—a foreign manufacturer that had been the only competitor of Mundo. That afternoon, Boss received an email from Mundo stating, "All outstanding offers are withdrawn." In a subsequent telephone conversation, Seller told Boss that Mundo would not deliver the presses for less than $2.9 million.
In a minimum of a 1,000-word contract analysis, discuss the following questions: Was Mundo obligated to sell the presses to Extra for $2.4 million? Assume Mundo was so obligated. What are Extra’s rights and remedies against Mundo.
The net present value of the proposal to be positive
: Dan Mayer manages a factory for Clark Inc. A sales person for new factory equipment has persuaded Dan that the new equipment offered by her company would be less dangerous for the employees and lower the sound level in the factory significantly. In f..
|
Events involved in declaration and payment of dividends
: The timeline shown is summarizing the important dates and events involved in the declaration and payment of dividends. Which of the following events occurs first in this sequence?
|
Include all elements of skeletal profit and loss statement
: Set up a skeletal profit & loss statement with the following figures : Include all elements of the skeletal profit & loss statement, round up dollars to total amount , extend percentages to two decimal points.
|
Value of one share of their common stock before split
: Progressive Corporation executed a 3:1 (3 for 1) common stock split on April 23, 2002. What was most probably happening to the value of one share of their common stock BEFORE the split? Progressive Corporation executed a 3:1 (3 for 1) common stock sp..
|
Remedies determination-mundo manufactures printing presses
: Contract analysis scenario two—remedies determination: Mundo manufactures printing presses. Extra, a publisher of a local newspaper, had decided to purchase new presses. Rep, a representative of Mundo, met with Boss, the president of Extra, to descri..
|
Calculate present value of growth opportunities
: The market consensus is that Analog Electronic Corporation has an ROE =9% and a beta of 1.80. It plans to maintain indefinitely its traditional plowback ratio of 2/4. This year's earnings were $3.2 per share. The annual divided was just paid. The con..
|
Exchange real estate in like-kind exchange
: Olivia and Matthew exchange real estate in a like-kind exchange. Olivia's basis in the real estate, subject to a $100,000 mortgage, is $250,000 and the fair market value is $400,000. She receives real estate with a fair market value of $300,000 and M..
|
Calculate the variances-efficiency variance-supplies
: Calculate the following variances: Efficiency Variance – Supplies
|
What is npv in dollars if you convert franc npv to dollars
: You are evaluating a proposed expansion of an existing subsidiary located in Switzerland. The cost of the expansion would be SF 16 million. The cash flows from the project would be SF 4.5 million per year for the next five years. Convert the projecte..
|