Why Might Legislators Often End Up Reversing Their Political Position

question 19

Essay

Why might legislators often end up reversing their political position on an issue by voting in favor of a bill when previously they had spoken out against it?

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Definitions:

Capital Spending

Expenditures by a company for the acquisition or improvement of long-term assets such as property, plants, and equipment in order to expand its operations or efficiency.

Sunk Cost

Costs that have already been incurred and cannot be recovered, and thus should not influence current/future business decisions.

Capital Budgeting

The process a business undertakes to evaluate potential major projects or investments, focusing on analyzing future cash flows and profitability.

Discount Rate

The yield rate utilized within DCF analysis for determining today's value of future cash movements.