Which of the Following Is NOT a Correct Statement About

question 6

Multiple Choice

Which of the following is NOT a correct statement about the second law of thermodynamics and entropy?

• A)The amount of disorder in the universe is always increasing.
• B)To maintain organization of a cell,a continual input of energy is required.
• C)Living cells without energy would become less organized.
• D)While the total amount of energy in a system is unchanged,energy lost as heat is no longer useful to the cell in doing work.
• E)Carbon dioxide and water form glucose without the input of energy.

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Definitions:

Discount Rate

A rate of interest utilized within discounted cash flow evaluations to ascertain the present worth of forthcoming cash flows.

Decision Tree

A timeline representation used in planning projects subject to multiple outcomes. Wherever an event has several outcomes, the timeline branches into as many paths, each with a probability. The result is a proliferation of possible paths to completion, each representing an outcome, its financial implication, and its probability. Hence, the decision tree specifies a probability distribution for the project’s overall financial outcome.

NPV Profile

A graphical representation showing the relationship between the Net Present Value (NPV) of a project and various discount rates.

Certainty Equivalent NPV

A method that adjusts the net present value (NPV) of an investment by incorporating the decision maker's risk aversion, providing a risk-adjusted NPV under certainty.