When Asked by New Parents What the Life Expectancy Is

question 1

Multiple Choice

When asked by new parents what the life expectancy is for their African American newborn, the nurse replies that, "2010 statistics indicate that your son:

• A) will have a life expectancy of approximately 65 years."
• B) can realistically expect to live into his late 80s."
• C) has a good chance of celebrating his 75th birthday."
• D) is likely to live into his late 90s."

---

Definitions:

Crossover Rate

The rate at which two projects have the same net present value, used in capital budgeting to compare the attractiveness of different projects.

Mutually Exclusive

Mutually exclusive projects or events are those that cannot occur simultaneously; choosing one option means the other cannot be selected.

NPV

Net Present Value, a method used in capital budgeting to assess the profitability of an investment or project.

Payback

Payback is the period of time required for the return on an investment to "pay back" the sum of the original investment, often used as a measure of investment risk.