Use the Following Preference Table to Answer the Questions $\quad$

question 59

Multiple Choice

Use the following preference table to answer the Questions $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Number of voters }$
$\begin{array} { l c c c c } & 4 & 6 & 8 & 4 \\\text { First choice } & \mathrm { D } & \mathrm { C } & \mathrm { A } & \mathrm { B } \\\text { Second choice } & \mathrm { C } & \mathrm { B } & \mathrm { D } & \mathrm { A } \\\text { Third choice } & \mathrm { B } & \mathrm { D } & \mathrm { C } & \mathrm { C } \\\text { Fourth choice } & \mathrm { A } & \mathrm { A } & \mathrm { B } & \mathrm { D }\end{array}$
-Using plurality, A wins. Could the four voters who most prefer B vote insincerely to change the outcome in a way that would benefit them?

• A) No, they cannot change the outcome.
• B) Yes, they could get B to win.
• C) Yes, they could get C to win.
• D) Yes, they could get D to win.

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Definitions:

Net Present Value

A financial metric that calculates the present value of all cash inflows and outflows associated with an investment, considering the time value of money.

Capital Budgeting

The process by which investors determine the value of potential investments or projects by assessing the cash inflows and outflows associated with them.

Conventional Cash Flows

A series of inward and outward cash flows over time where there is typically one initial outflow followed by several inflowing cash amounts.

Profitability Index

The Profitability Index is a financial metric that compares the present value of future cash flows generated by a project to the initial investment, used to assess the attractiveness of an investment.