A 5-Year Project Requires an Additional Commitment of $100,000 in Net

Multiple Choice

A 5-year project requires an additional commitment of $100,000 in net working capital. What is the opportunity cost associated with this investment?

A) $100,000
B) The present value of $100,000 discounted at the firm's cost of capital for 5 years
C) The present value of $100,000 discounted at the firm's cost of capital for 5 years minus $100,000
D) No opportunity cost is involved.