Multiple Choice
A business is considering a cash outlay of $400,000 for the purchase of land, which it could lease for $40,000 per year. If alternative investments are available which yield a 21% return, the opportunity cost of the purchase of the land is:
A) $84,000
B) $40,000
C) $44,000
D) $ 8,400
Correct Answer:
Verified
Correct Answer:
Verified
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