A Business Is Considering a Cash Outlay of $250,000 for the Purchase

Multiple Choice

A business is considering a cash outlay of $250,000 for the purchase of land, which it intends to lease for $40,000 per year.If alternative investments are available that yield an 15% return, the opportunity cost of the purchase of the land is

A) $45,000.
B) $37,800.
C) $47,200.
D) $37,500.