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

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Definitions:

Female Growth Spurt

The rapid increase in height and weight experienced by girls during puberty, typically earlier than in boys.

Menarche

The first menstrual cycle, or first menstrual bleeding, in female humans, marking the onset of fertility and reproductive capability.

Stimulant

A substance that raises levels of physiological or nervous activity in the body, increasing alertness, attention, and energy.

Amphetamine

A stimulant drug used to treat attention deficit hyperactivity disorder (ADHD) and narcolepsy, known for increasing alertness and concentration.