How Did the Expansion of Railroads Accelerate the Second Industrial

question 120

Multiple Choice

How did the expansion of railroads accelerate the second industrial revolution in America?

• A) The division of time into four zones allowed businesses to communicate by telegraph for the first time.
• B) Railroads created a true national market for U.S. goods.
• C) Large banks were now able to locate in western railroad towns.
• D) The adoption of a standard railroad gauge made private and federal land grants more available.
• E) The expansion of trains increased the efficiency of small businesses.

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Definitions:

Discounted Payback

A capital budgeting method that calculates the length of time it takes to break even from an investment based on its discounted cash flows.

Profitability Index

A financial tool that calculates the ratio of the present value of future cash flows generated by an investment to the investment’s initial cost, used to assess project attractiveness.

Profitability Index

A financial metric that measures the relative profitability of an investment by dividing the present value of future cash flows by the initial investment cost.

Required Return

The expected return that investors seek from an investment, considering its risk level and the opportunity cost of forgoing other investments.