A Graduate Student Is Trying to Follow the Weather on Jupiter

question 8

Multiple Choice

A graduate student is trying to follow the weather on Jupiter for her PhD thesis. To see the big weather patterns in the upper atmosphere of the planet, she needs to have excellent resolution. What type of telescope would be best for her to use?

• A) a refractor, with as small an aperture as possible
• B) a radio telescope
• C) a large reflector in an observatory located at sea level
• D) a large reflector located in orbit above the Earth's atmosphere
• E) you can't fool me, all these telescopes have the same resolution

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Definitions:

Discounted Payback Method

A capital budgeting technique that calculates the time required to recoup the initial investment in present value terms.

Normal Cash Flows

Cash flows that occur in a predictable pattern, where an initial outlay is followed by a series of income receipts.

Real Internal Rate of Return

The real internal rate of return is the annual rate of growth an investment is expected to generate, adjusted for inflation.

Multiple IRR Problem

A situation in capital budgeting where a project has more than one internal rate of return due to changing cash flow signs over the project's duration.