Which of These Is Believed to Be the Correct Explanation

question 47

Multiple Choice

Which of these is believed to be the correct explanation for the origin of the Moon?

• A) The Moon was formed elsewhere in the solar system (which is why its composition differs from that of Earth) and was later captured by Earth's gravity.
• B) Shortly after its formation, Earth was spinning so fast in its molten state that a large piece of material was thrown off, and this chunk coalesced to form the Moon-leaving the Pacific Ocean basin in the place where it was thrown off.
• C) Earth and the Moon were formed separately at the same time, while in orbit around their common center of mass, by the accretion of planetesimals.
• D) Earth was struck by a large planetesimal or planetesimals that caused material to be ejected. This material coalesced to form the Moon.

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Definitions:

Discount Rate

The discount rate utilized in determining the present value of future cash flows through discounted cash flow (DCF) analysis.

NPV

Net Present Value, a method used in capital budgeting to evaluate the profitability of an investment by calculating the present value of expected cash flows minus the initial cost.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows.

Capital Rationing

The practice of limiting investments or expenditures in new projects due to budget constraints or capital availability.