Lara Technologies Is Considering a Total Cash Outlay of $250,000

question 27

Multiple Choice

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

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

---

Definitions:

Department of Defense

The federal agency charged with coordinating and supervising all agencies and functions of the government relating directly to national security and the United States armed forces.

Military Establishment

The structures, institutions, and personnel of a nation's armed forces responsible for defense and security policies.

Military Adventurism

Refers to the aggressive or risky military actions by a country without regard for potential consequences, often to promote political or ideological goals.

Covert Operations

Secret activities carried out by governments or organizations usually aimed at influencing conditions in foreign countries without revealing their source.