What Relatively Recent Event Shows That Impacts Continue to Happen

question 15

Multiple Choice

What relatively recent event shows that impacts continue to happen in our solar system even today?

• A) a large asteroid hit a town near San Francisco and made an enormous crater
• B) a comet (which broke into more than 20 pieces) hit the planet Jupiter in 1994
• C) one of the moons of Mars collided with Mars and made a huge explosion, sending pieces throughout the solar system
• D) Pluto collided with another planet, and broke into two pieces
• E) the Mt. Pinatubo volcano in the Philippines erupted in June 1991

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Definitions:

Discount Rate

The interest rate that discounted cash flow analysis relies on to calculate the current worth of prospective cash flows.

Cash Inflows

The money received by a business from its operational, investment, and financing activities.

Profitability Index

A financial measure that assesses an investment's attractiveness, determined by dividing the present value of future cash flows by the initial investment amount.

Initial Investment

The initial amount of money that is invested in a project or venture at the beginning.