Lara Technologies Is Considering a Cash Outlay of $250,000 for the Purchase

question 78

Multiple Choice

Lara Technologies is considering a cash outlay of $250,000 for the purchase of land, which it could lease out for $35,000 per year. If alternative investments that yield a 12% return are available, the opportunity cost of the purchase of the land is

• A) $35,000
• B) $30,000
• C) $250,000
• D) $4,200