Use the Following Scenario for the Next Three Questions

question 20

Multiple Choice

Use the following scenario for the next three questions.
A 26-year-old biologist makes a trip to study alien life forms in a distant planet 10 light-years away.The round trip including a stay of 1 year in the distance planet takes 21.5 years according to the clock on earth.The biologist's son is 3-year-old when he left.Assume that the planet is not moving with respect to Earth,and the speed is the same for both outbound and inbound part of the journey.
-How fast is the spaceship traveling?

• A)0.375c
• B)0.5c
• C)0.67c
• D)0.845c
• E)0.976c

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Definitions:

Direct Method

A way to prepare the cash flow statement where actual cash flow information from company’s operations segment is used.

Operating Expenses

Expenses incurred in the normal course of business operations, excluding costs of goods sold and depreciation.

Prepaid Expenses

Costs paid for in advance for goods or services to be received or used in the future, recorded as assets and subsequently expensed over the applicable period.

Indirect Method

A method used in cash flow statements to calculate net cash flow from operating activities by adjusting net income for non-cash transactions.