Escape Speed: What Is the Ratio of the Escape Speed

question 6

Multiple Choice

Escape speed: What is the ratio of the escape speed of a rocket launched from sea level to the escape speed of one launched from Mt. Everest (an altitude of 8.85 km) ? The radius of the earth is 6.38 × 10⁶ m.

• A) 1.0007
• B) 1.0014
• C) 1.0001
• D) 0.9986
• E) 0.9993

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Definitions:

MIRR

Modified Internal Rate of Return, which adjusts for the differences in reinvestment rates of a project's cash flows.

Project

A temporary endeavor undertaken to create a unique product, service, or result with defined objectives and constraints.

WACC

Weighted Average Cost of Capital; a measure used to calculate the average cost of a company's financing sources, including equity and debt.

NPV

Net Present Value; a calculation that compares the present value of cash inflows with the present value of cash outflows over a period of time to assess profitability.