Table 23-2 Suppose a Town Is to Vote on Three Possible Locations

question 75

Multiple Choice

Table 23-2
Suppose a town is to vote on three possible locations for a new park: A, B, or C. The preferences are in Table 23-2. Suppose the mayor decides on the following Borda count voting scheme: For each option, we will give one point for last place, two points for second last, and three points for the third last etc. The outcome with the most points is the winner.

-Refer to the information provided. Suppose option B is no longer an alternative. The winner of this Borda count will be:

• A)option A.
• B)option B.
• C)option C.
• D)a tie between option A and C

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Definitions:

Risk-Free Rate

The theoretical return on investment with no risk of financial loss, typically represented by the yield on government securities.

Certainty Equivalent Approach

The Certainty Equivalent Approach is a method used in finance to evaluate investments by adjusting uncertain future cash flows to their guaranteed amounts.

Capital Budgeting

The process of allocating resources for significant investments or projects in a company, assessing their potential financial returns and risks.

Opportunity Costs

The cost of choosing one option instead of the next best alternative, representing the benefits missed out on.