Multiple Choice
Rent2U, Inc. is considering expanding their operations. The company owns a lot near the present facility on which a new building can be constructed. The land was purchased 10 years ago for $75,000 and now has a market value of $180,000. Assuming a tax rate of 20%, calculate the opportunity cost of the land.
A) $84,000
B) $105,000
C) $159,000
D) $180,000
Correct Answer:
Verified
Correct Answer:
Verified
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