Multiple Choice
Farris Company is considering a cash outlay of $500,000 for the purchase of land,which it could lease out for $40,000 per year.If alternative investments are available that yield a 15% return,the opportunity cost of the purchase of the land is
A) $75,000
B) $40,000
C) $44,000
D) $7,500
Correct Answer:
Verified
Correct Answer:
Verified
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