Amanda Invests $500,000 in a New Business Venture

Multiple Choice

Amanda invests $500,000 in a new business venture.Which of the following correctly identifies the relevant opportunity cost that she faces?

A) The potential profits from the business
B) The discounted present value of future profits from the business
C) The rate of interest that could have been earned on $500,000
D) The probability of losing the initial investment of $500,000
E) The rate of return on $500,000 invested in the business