Byron Was Reading an Article in the New York Times

question 131

Multiple Choice

Byron was reading an article in the New York Times that discussed the effectiveness of a new medication for those suffering from scleroderma.The article interviewed the medicine's inventor,who gave a plethora of information as to why this medication is safe,effective,and economical.Because Byron is a critical thinker,he is cautious in his acceptance of the article's claims.Why?

• A) Byron understands that anything printed in a newspaper should be viewed with caution because it is not a scholarly journal.
• B) Byron knows that medical science cannot possibly produce a medication that can be both effective and safe while also being economical.
• C) The article does not actually report on the methods used in the research, so the methods must have something wrong with them.
• D) Byron knows that the medicine's inventor may have an agenda that influences his interpretation of the research into the safety and effectiveness of the new medicine.

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Definitions:

Non-normal Cash Flows

Cash flows that do not follow a regular or predictable pattern over time, often seen in investments with variable returns.

Initial Costs

Initial expenses required to start a project, including setup, acquisition, or investment costs.

MIRR

Modified Internal Rate of Return, a financial measure used to assess the attractiveness of investments, adjusting for the cost of capital and considering the reinvestment of cash flows.

NPV

Net Present Value, a method used in investing to calculate the difference between the present value of cash inflows and outflows over a period of time.