Einstein's Principle of Equivalence States

question 52

Multiple Choice

Einstein's principle of equivalence states:

• A)the gravitational constant is the same everywhere in the universe
• B)it is impossible to tell the difference between gravitational force and the normal force
• C)every mass exerts a gravitational force on every other mass
• D)gravitational mass and inertial mass are the same
• E)the laws of physics are the same in all inertial reference frames

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Definitions:

Profitability Index

A calculation that measures the profitability of an investment, determined by dividing the present value of future cash flows by the initial investment cost.

NPV Ranking

A method of evaluating investment opportunities by ranking them based on their Net Present Value, which estimates the present value of future cash flows minus initial investments.

IRR Ranking

The process of ordering investments or projects by their Internal Rate of Return, which estimates profitability.

Discounted Cash Flow

A financial analysis method that estimates the value of an investment based on its expected future cash flows, discounted to their present value.