Multiple Choice
A five-year project requires an additional commitment of $100,000 in net working capital.What is the present value opportunity cost associated with this investment?
A) $100,000
B) the present value of $100,000, discounted at the firm's cost of capital
C) the value of $100,000, netted against the discounted present value of the $100,000 of working capital returned at the end of the project
D) no opportunity cost is involved
Correct Answer:
Verified
Correct Answer:
Verified
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