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 16% return,the opportunity cost of the purchase of the land is
A) $45,000.
B) $37,800.
C) $47,200.
D) $40,000.
Correct Answer:
Verified
Correct Answer:
Verified
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