You Stand on a Spring Scale on the Floor of an Elevator.Of

question 12

Multiple Choice

You stand on a spring scale on the floor of an elevator.Of the following, the scale shows the highest reading when the elevator:

• A)moves upward with increasing speed
• B)moves upward with decreasing speed
• C)remains stationary
• D)moves downward with increasing speed
• E)moves downward at constant speed

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Definitions:

Externalities

Costs or benefits that affect parties who did not choose to incur that cost or benefit, often related to environmental, public health, or economic activities.

Net Present Value (NPV)

A calculation used to assess the profitability of an investment, measuring the difference between the present value of its cash inflows and outflows.

Internal Rate of Return (IRR)

The rate of growth a project is expected to generate, calculated as the discount rate that makes the net present value (NPV) of all cash flows equal to zero.

Payback Method

An investment analysis method that calculates the time required to recoup the cost of an investment, based on the cash flow it generates.