How Can One Estimate the Opportunity Cost of Capital for an "Average

question 11

Essay

How can one estimate the opportunity cost of capital for an "average risk" project?

---

Definitions:

Marginal Analysis

An examination of the added benefits of an activity compared to the added costs incurred by that same activity.

Cell Phones

Portable electronic devices that allow users to make voice calls, send text messages, and access various digital services.

Total Profit

The total income a business earns after subtracting all expenses and costs associated with its operations.

Marginal Benefit

The added value or enjoyment a consumer gets from using an additional unit of a product or service.