A Business Is Considering a Cash Outlay of $200,000 for the Purchase

Multiple Choice

A business is considering a cash outlay of $200,000 for the purchase of land, which it could lease for $35,000 per year.If alternative investments are available that yield an 18% return, the opportunity cost of the purchase of the land is:

A) $35,000.
B) $36,000.
C) $1,000.
D) $37,000.