During the project selection stage, you learn that the value of Project A is $100,000 and the value of Project B is $75,000. Ultimately, Project A was chosen. As a result, the opportunity cost of that decision is:
A. $100,000
B. $75,000
C. $25,000
D. $175,000
Answer: B. $75,000
The opportunity cost is simply the value of the project not chosen. There is no math involved.
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