Consider the Hypothetical Chemical Reaction Represented by the Equation 3 $\rightarrow$

question 33

Multiple Choice

Consider the hypothetical chemical reaction represented by the equation 3 A + 2 B $\rightarrow$ A₃B₂ Which of the following is a correct interpretation of this equation?
(i) 3 grams of A react with 2 grams of B to form 1 gram of A₃B₂
(ii) 3 atoms of A react with 2 atoms of B to form 1 molecule of A₃B₂
(iii) 3 moles of A react with 2 moles of B to form 1 mole of A₃B₂

• A)i only
• B)ii only
• C)iii only
• D)ii and iii
• E)i,ii,and iii

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Definitions:

Risk Averse

The tendency to prefer certainty over risk, where an individual opts for the investment with the least potential for financial loss.

NPV

A financial metric that calculates the total value of a project or investment by discounting future cash flows back to their present value and subtracting initial investment cost.

Scenario Analysis

A business planning technique in which the implications of variations in planning assumptions are explored. Also known as “what-if-ing.”

Abandonment Option

A financial decision allowing companies to cease a project or investment to avoid further losses.