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SunPower Ltd recently signed an agreement and paid a $100,000 deposit to purchase a new solar powered battery system. The battery system will allow power
SunPower Ltd recently signed an agreement and paid a $100,000 deposit to purchase a new solar powered battery system. The battery system will allow power to be stored and sold to the power grid and will be received and made ready to use in seven weeks. At the time the battery system is received, SunPower Ltd will pay the supplier the balance of $1,200,000 owing on the battery system. At the time the deposit is paid why is it relevant for potential lenders and shareholders to be aware of this agreement? Briefly explain your answer. 1 A
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