The Opportunity Cost of a Resource Should Be Considered in Project

question 68

Multiple Choice

The opportunity cost of a resource should be considered in project analysis, unless:

• A)no cash flows result from its use.
• B)the resource was purchased in a prior time period.
• C)the resource has been fully depreciated.
• D)the resource has no identifiable market value.

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Definitions:

Prices Fall

A situation where the monetary value or cost of goods and services decreases over a period of time, often leading to increased consumer demand.

Perfect Substitutes

Goods that can be used in place of each other with no loss of utility to the consumer, often seen as identical in consumption.

Apples

Edible fruits from the apple tree, with a sweet taste and crisp texture, consumed worldwide and used in various cuisines for dishes such as pies, juices, and ciders.

Bananas

A curved, yellow fruit with soft, sweet flesh when ripe, often eaten as a snack or used in cooking.