What Do You Need to Calculate Your Opportunity Cost for Work

question 27

Multiple Choice

What do you need to calculate your opportunity cost for work versus college?

• A)Your post-graduation earning potential,the number of years you have before retirement,and your tuition
• B)Your age,the age you plan on retiring,and your tuition
• C)Your current earnings,your post-graduation earning potential,and the number of years you plan on working
• D)Your tuition,your age,and your current earnings

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Definitions:

Cash Inflow

The cumulative sum of funds flowing into a company, usually originating from its operations, investments, and financial activities.

Semiannually

Occurring twice a year, typically every six months.

Effective-interest Method

A technique used in finance to calculate the actual interest rate on a bond or loan, taking into account the effect of compounding over the period.

Interest Expense

The cost incurred by an entity for borrowed funds; it is a non-operating expense shown on the income statement.