Jeff's Mother Died from Huntington's Disease and He Inherited the Huntington's

question 24

Multiple Choice

Jeff's mother died from Huntington's disease and he inherited the Huntington's gene.What is the likelihood he will also develop symptoms of Huntington's disease?

• A)Jeff will almost certainly develop Huntington's.
• B)Jeff's odds of developing Huntington's are 1 in 2.
• C)Jeff's odds of developing Huntington's are 1 in 4.
• D)Jeff's odds of developing Huntington's depends on the gene he inherited from his father.

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Definitions:

Present Value

Present value is the current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Regular IRR

The Internal Rate of Return (IRR) is a financial metric used to estimate the profitability of potential investments.

WACC

The Weighted Average Cost of Capital represents the average cost of a company's financing (debt and equity), where each form of capital is weighted according to its proportion in the overall financing mix.

NPV

Net Present Value; a method used in capital budgeting to assess the profitability of an investment or project, calculated by discounting future cash flows to their present value and subtracting the initial investment.