A Recency Effect Occurs When We Pay Attention to the __________

question 34

Multiple Choice

A recency effect occurs when we pay attention to the __________ pieces of information we receive about a person or situation.

• A)last
• B)most exciting
• C)first
• D)largest

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Definitions:

Negative NPV

A condition where the net present value of all cash flows associated with a project or investment is negative, indicating that it is not financially viable.

Payback Period

The length of time it takes to recover the cost of an investment.

PI

A mathematical constant represented by the symbol π, approximated as 3.14159, or the ratio of a circle's circumference to its diameter in mathematics. Alternatively, if referring to "present indifference" or a concept specific to an industry or study, clarification is needed.

Positive NPV

An indicator that an investment's present value of net cash flows will exceed its initial cost, suggesting profitability.