The Most Valuable Investment Given Up If an Alternative Investment

question 65

Multiple Choice

The most valuable investment given up if an alternative investment is chosen is a(n) :

• A) Salvage value expense.
• B) Net working capital expense.
• C) Sunk cost.
• D) Opportunity cost.
• E) Erosion cost.

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Definitions:

Weber's Constant

A principle in psychophysics that quantifies the smallest change in a stimulus that can be detected, stating that this change is a constant proportion of the original stimulus intensity.

Threshold

The point at which a stimulus is strong enough to be detected or to cause a response.

Difference Threshold

The smallest detectable difference between two stimuli or the minimum change in a stimulus that can be correctly perceived as differing from a reference stimulus.

Just Noticeable Difference

The minimum difference in stimulus intensity that a specific sense (like sight, hearing, taste, touch, or smell) can detect.