A Recent College Graduate Has the Choice of Buying a New

Multiple Choice

A recent college graduate has the choice of buying a new car for $30 000 or investing the money for four years with a 5% expected annual rate of return.If the graduate decides to purchase the car,the BEST estimate of the opportunity cost of that decision is:

A) $30 000.
B) $6000.
C) $1500.
D) zero,since there is no opportunity cost for this decision.