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tiffxnnyyy
08.05.2020 •
Business
Lara Technologies is considering a total cash outlay of $216,000 for the purchase of land, which it could lease for $36,300 per year. If alternative investments are available that yield a 15% return, the opportunity cost of the purchase of the land is:.
a. $35,000.
b. $30,000.
c. $250,000.
d. $4,200.
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Ответ:
Opportunity cost is $32,400
Explanation:
Opportunity cost is an economic term for expressing cost in terms of forgone alternatives.
The opportunity cost is therefore;
$216,000 x 15% = $32,400 opportunity cost.
The economic profit would therefore be the lease less opportunity cost.
$36,300 - $32,400= $3,900
Please note that had there been 2 or more alternatives, the investment with the highest yield should be taken.
Ответ:
A is the answer