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That's wrong because you cannot use
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the Law of Conservation of Energy in this process
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when I tell you that it's
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a totally inelastic collision in the middle.
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Because, what'll happen is,
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some energy will go into heating up the block;
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it might even catch fire if the bullet's going too fast.
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But you can use the Law of Conservation of Momentum all the time
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in the first collision to deduce that M + m
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times some intermediate velocity is the incoming momentum.
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You understand that?
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From that, you can find the