The EROI System of Evaluating Energy Exploitation from Various Sources

question 42

Multiple Choice

The EROI system of evaluating energy exploitation from various sources is based upon

• A)the market price of the energy involved.
• B)the environmental damage likely to be caused by the extraction process.
• C)the ratio of energy extracted to energy invested in the extraction process.
• D)the amount of heat produced by using a unit of the energy in question.

---

Definitions:

Net Present Value

The calculation used to determine the current value of a series of future cash flows, adjusted for time and interest.

Acquisition Cost

is the total cost incurred to acquire an asset, investment, or property, which includes the purchase price and all associated expenses.

Common Stock

A type of security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Cash Purchase

A transaction method in which goods or services are paid for in full with cash at the time of purchase.