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.
C) The present value of $100,000, discounted at the firm's cost of capital, and "borrowed" for the life of the project.
D) No opportunity cost is involved.
Correct Answer:
Verified
Correct Answer:
Verified
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