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.
Showing posts with label project selection. Show all posts
Showing posts with label project selection. Show all posts
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