Multiple Choice
Farris Company is considering a cash outlay of $500,000 for the purchase of land, which it could lease out for $40,000 per year. If alternative investments that yield a 15% return are available, the opportunity cost of the purchase of the land is
A) $75,000
B) $40,000
C) $44,000
D) $7,500
Correct Answer:
Verified
Correct Answer:
Verified
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