All of the Following Are Differences Between the Richter Scale

question 25

Multiple Choice

All of the following are differences between the Richter scale and the Mercalli intensity scale EXCEPT:

• A) the Richter scale uses quantitative data, whereas the Mercalli scale uses qualitative data.
• B) the Richter magnitude decreases as distance from the epicenter increases, while the Mercalli measurement remains the same regardless of distance.
• C) the Richter scale measures the size of earthquake waves, whereas the Mercalli scale measures the amount of damage.
• D) the Richter scale is logarithmic, while the Mercalli scale is linear.

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Definitions:

AAR

Average Annual Return, which measures the average return on an investment over a multi-year period.

Multiple Rates Of Return

One potential problem in using the Internal Rate of Return method if more than one discount rate makes the Net Present Value of an investment zero.

Net Present Value

A process that evaluates how the worth of a dollar now compares to its worth in the future, factoring in both inflation and investment returns.

Discount Rate

This is the rate of interest utilized in discounted cash flow analysis to calculate the current worth of future cash flows.