Earthquakes and Volcanoes: Plate Boundaries

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Questions and Answers

A company is deciding whether to invest in a new project. Which factor would decrease the likelihood of it being approved, assuming all other variables remain constant?

An increase in the projected internal rate of return (IRR).
A decrease in the company's cost of capital.
A decrease in the initial investment required.
An increase in the project's payback period. (correct)

What is the primary purpose of calculating the weighted average cost of capital (WACC)?

To assess the risk-free rate of return for potential investments.
To discount future cash flows in capital budgeting decisions. (correct)
To determine a company's optimal debt-to-equity ratio.
To maximize the company's earnings per share.

Which of the following best describes the relationship between risk and return in capital budgeting?

Higher risk projects should be evaluated using a lower discount rate.
Higher risk projects should be evaluated using a higher discount rate. (correct)
Lower risk projects should be evaluated using a higher discount rate.
Risk and return are inversely related; therefore, the discount rate should remain constant regardless of risk.

A project has an initial cost of $100,000 and generates the following cash flows: Year 1: $30,000, Year 2: $40,000, Year 3: $50,000. What is the payback period?

2.6 years (A) Signup and view all the answers

A company is evaluating two mutually exclusive projects. Project A has a higher NPV than Project B, but Project B has a higher IRR than Project A. What should the company do when making its investment decision?

Choose the project with the higher NPV, as it directly measures the increase in the firm's value. (D) Signup and view all the answers

What is the likely effect of repeatedly clicking a 'try reloading' or 'reload' button in a web application?

It can cause the application to freeze or become unresponsive due to excessive requests. (A) Signup and view all the answers

In a web application, the 'erase all' function (Shift+A), is intended to perform what action?

Clear all user-generated content or drawings within the application. (C) Signup and view all the answers

If a user encounters a message stating 'Some slides didn't load', what is the most appropriate initial action?

Check the internet connection and try reloading the presentation. (B) Signup and view all the answers

What type of problem is indicated by a message that some slides in a presentation did not load correctly?

A potential network issue or a problem with the presentation file itself. (A) Signup and view all the answers

What is the most likely purpose of a 'punch-viewer-cursor-hiding-component' in a presentation application?

To temporarily hide the cursor from view during specific actions or modes. (D) Signup and view all the answers

Which of the following factors is LEAST likely to influence the magnitude of an earthquake?

The depth of the focus. (A) Signup and view all the answers

What is the primary difference between the focus and the epicenter of an earthquake?

The focus is the point of rupture, while the epicenter is the point on the surface directly above it. (B) Signup and view all the answers

Transform plate boundaries are most closely associated with which type of earthquake activity?

Shallow-focus earthquakes. (C) Signup and view all the answers

Which of the following scenarios would most likely result in a volcanic eruption with highly viscous lava?

A volcano with high silica content. (A) Signup and view all the answers

How does the presence of water affect the melting point of mantle rocks at subduction zones, and how does this relate to volcanism?

Water decreases the melting point, promoting volcanism. (D) Signup and view all the answers

Which of the following volcanic landforms is typically associated with effusive eruptions of basaltic lava?

Shield volcano. (B) Signup and view all the answers

How do scientists use seismic waves to understand the Earth's internal structure?

By measuring the speed and path of the waves as they travel through different layers. (B) Signup and view all the answers

Which of the following describes the relationship between plate tectonics, earthquakes, and volcanoes?

Plate tectonics cause both earthquakes and volcanoes, primarily at plate boundaries. (B) Signup and view all the answers

Why are some volcanic eruptions more explosive than others?

Due to differences in magma composition, gas content, and viscosity. (D) Signup and view all the answers

Which statement best describes the relationship between the intensity and magnitude of an earthquake?

Magnitude measures the energy released at the source; intensity measures the effects at a given location. (A) Signup and view all the answers

What is the significance of understanding the recurrence interval of earthquakes in a particular region?

It allows for better urban planning and building codes to mitigate earthquake risk. (D) Signup and view all the answers

Large volcanic eruptions can sometimes lead to temporary global cooling. Which of the following is the primary cause of this phenomenon?

The injection of sulfate aerosols into the stratosphere, which reflects sunlight. (B) Signup and view all the answers

How does the viscosity of magma influence the shape of a volcano?

High viscosity magma creates steep-sided, cone-shaped volcanoes. (B) Signup and view all the answers

Which of the following is a common precursor to a volcanic eruption that scientists monitor?

Increased frequency and intensity of small earthquakes around the volcano. (A) Signup and view all the answers

What is the relationship between the Ring of Fire and plate tectonics?

The Ring of Fire is a zone of intense seismic and volcanic activity located around the Pacific Ocean due to subduction zones and other plate interactions. (A) Signup and view all the answers

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