Table 22-9 -Refer to Table 22-9. the Table Shows the Preferences of the Preferences

question 50

Multiple Choice

Table 22-9
-Refer to Table 22-9. The table shows the preferences of four types of voters over four possible outcomes: A, B, C, D. In addition, the table shows the percentage of voters of each type. Based on this information, which of the following statements is false?

• A)Outcome D is preferred to outcome C overall.
• B)Outcome C is preferred to outcome B overall.
• C)Outcome B is preferred to outcome D overall.
• D)Outcome D is preferred to outcome A overall.

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Definitions:

Present Value

Present Value refers to the value today of an amount of money that is to be received in the future, adjusted for a certain rate of return.

Interest Rate

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.

Dollar Amount

The value of something represented in terms of the currency of the United States, expressed as a quantity of dollars.

Discount Rates

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows.