If an Isotope Has a Half-Life of 50 Million Years

question 14

Multiple Choice

If an isotope has a half-life of 50 million years and an 1/8 of the sample remaining consists of that isotope, the age of the rock from which it was taken is:

• A) 400 million years.
• B) 300 million years.
• C) 150 million years.
• D) 800 million years.
• E) none of the above

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Definitions:

Sensitivity Analysis

A technique used to determine how different values of an independent variable will impact a particular dependent variable under a given set of assumptions.

Capital Budgeting

The process a business undergoes to evaluate potential major projects or investments.

Net Present Value

A financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Abandonment Option

A financial decision-making tool allowing a company to cease an investment or project if it becomes unprofitable or non-viable.