Because Marla Was So Strongly Committed to a Fat-Free Diet

question 72

Multiple Choice

Because Marla was so strongly committed to a fat-free diet, she did not bother to read a recent report by the New England Journal of Medicine suggesting that some fat in our diet is healthy. The report was on CNN.com, which Marla browses daily, but the headline did not appeal to her as the result of

• A) selective retention.
• B) selective comprehension.
• C) selective exposure.
• D) selective perception.
• E) stimulus discrimination.

---

Definitions:

Net Present Value

Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time, used to evaluate the profitability of an investment.

Payback

The period of time required for the return on an investment to "repay" the original investment cost.

Discounted Payback

A capital budgeting method that calculates the time required to recoup an investment based on discounted cash flows.

Stockholder Wealth

The total value of all financial assets owned by the shareholders of a company, often measured by the market value of the shares held.