Jarrett Company Is Considering a Cash Outlay of $300,000 for the Purchase

Multiple Choice

Jarrett Company is considering a cash outlay of $300,000 for the purchase of land, which it could lease for $36,000 per year. If alternative investments are available that yield a 9% return, the opportunity cost of the purchase of the land is

A) $27,000
B) $36,000
C) $9,000
D) $72,000