Use the Following Figure to Answer the Question

question 13

Multiple Choice

Use the following figure to answer the question:
-If the Earth had two identical moons in one circular orbit,and the moons were as far apart in that orbit as they could be,the center of gravity of the Earth-moons system would be

• A)at the center of the Earth.
• B)inside the Earth,but off center.
• C)outside the Earth,but within the orbital path of the moons.
• D)outside the Earth,but beyond the orbital path of the moons.

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Definitions:

Simple Rate of Return

A financial metric that measures the efficiency of an investment as the annual income divided by the initial investment cost.

Time Value of Money

The principle that a sum of money is worth more now than the same sum in the future due to its potential earning capacity.

Payback Method

A method of investment appraisal that calculates the time required for the cash inflows from a project to repay its initial investment cost.

Capital Budgeting

The process of planning and managing a company’s long-term investments in major projects or assets, evaluating profitability and risks.