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Larry was accepted at three different graduate schools, and must choose one. Elite U costs $50,000 per year and did not offer Larry any financial aid. Larry values attending Elite U at $60,000 per year. State College costs $30,000 per year, and offered Larry an annual $10,000 scholarship. Larry values attending State College at $40,000 per year. NoName U costs $20,000 per year, and offered Larry a full $20,000 annual scholarship. Larry values attending NoName at $15,000 per year. Larry's opportunity cost of attending State NoName U is:
Investment Account
An account held at a financial institution that is used to buy and hold investment assets, such as stocks, bonds, and mutual funds.
Revenue Recognized
Income that a company has earned and reported in its financial statements for a specific period, following accounting principles.
Trading Investments
Securities that are purchased by a firm for the purpose of realizing a short-term profit.
Long-Term Trading Investments
Investments in stocks, bonds, or other securities that a company intends to hold for a period longer than a year to achieve long-term financial goals.
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