Multiple Choice
A business is considering a cash outlay of $880,000 for the purchase of land, which it intends to lease for $200,000 per year.If alternative investments are available that yield a 15% return, the opportunity cost of the purchase of the land is:
A) $132,000.
B) $102,000.
C) $200,000.
D) $175,000.
Correct Answer:
Verified
Correct Answer:
Verified
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