Assume That a Group of Explorers Traveled to the Orion

question 58

Multiple Choice

Assume that a group of explorers traveled to the Orion Nebula, which is the nearest star-forming cloud and is at a distance of 1,300 light-years, using revolutionary technology that allowed them to travel at a speed of 0.99c.Observers back on Earth using Earth-bound clocks would say it took the explorers ________ to get there, but the explorers with their moving clocks would say it took them only ________ to get there.

• A) 1,310 years; 185 years
• B) 1,440 years; 630 years
• C) 1,310 years; 390 years
• D) 1,440 years; 425 years
• E) 1,310 years; 1,300 years

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Definitions:

Stand-Alone Project

In capital budgeting, a project with no competition either for the task it is to accomplish or for resources.

Cost of Capital

The rate of return a company must pay to its investors for the use of their capital, essentially the cost of financing and investing in the company's assets.

NPV

Net present value. A capital budgeting technique that rates projects according to the total present value of all their associated cash flows. The higher the total or net present value, the better.

Capital Budgeting Decision

The process by which a business determines whether projects such as investments in equipment or new products are worth pursuing.