Bob Read a Circular from the Department of Human Health

question 45

Multiple Choice

Bob read a circular from the Department of Human Health and Safety,recommending a lower intake of salt as its high consumption can lead to health problems.Bob always believed that salt is good for health,as his grandfather who is 90 years of age,adds a lot of salt in his food.Bob rejects the information on the circular as rubbish.Which of the following will offer the most likely explanation for Bob's rejection?

• A) Selective persuasion
• B) Selective exposure
• C) Selective attention
• D) Selective distortion
• E) Selective precipitation

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Definitions:

Equivalent Annual Annuity

A financial calculus method for comparing the annualized cash flows of projects with different lifespans.

Initial Outlays

The initial investments or costs incurred when starting a project, business, or investment.

Net Present Value

A financial measure that assesses an investment's profitability by calculating the difference between the present value of cash inflows and the present value of cash outflows throughout a certain timeframe.

Internal Rate of Return

The discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.