Vignette #1 John Is 35 and Interested in Gaining Muscle

question 54

Multiple Choice

Vignette #1 John is 35 and interested in gaining muscle mass and decides to check out the nutritional supplements at the local health food store. The clerk approaches him wearing a white lab coat; this immediately impresses John, who now thinks that the clerk is well informed. John explains that his goal is to gain the maximum muscle mass in the shortest time. The clerk is eager to assist John and says, "Let me show you the products that will benefit you most." Let's see if the clerk really knows what ergogenic aids are all about by answering these questions.
The clerk recommends that John increase his protein intake by purchasing amino acid supplements. Is this a good idea?

• A) Yes, because most Americans' diets lack adequate amounts of high-quality protein
• B) Yes, because these products have been proven to increase muscle size
• C) Yes, because muscle endurance increases with these products
• D) No, because your body converts extra amino acids to fat
• E) No, because excess amino acids can lead to over-hydration

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Definitions:

Sunk Costs

Past expenditures that have already been incurred and cannot be recovered.

Incremental Cash Flows

The extra cash flow from operations generated by a company when it embarks on a new project.

Net Present Value

The difference between the present value of cash inflows and outflows over a period of time, used in capital budgeting to assess the profitability of an investment.

Incremental Cash Flows

The additional cash flows that a company expects to generate from a particular investment or project.