The Opportunity Cost of an Asset

question 55

Multiple Choice

The opportunity cost of an asset:

• A) should be depreciated annually.
• B) can differ depending on market conditions.
• C) is typically ignored in capital budgeting.
• D)is important only for parcels of land.

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Definitions:

Hypothetical Syllogism (HS)

A logical argument formed by two conditional statements and a conclusion that follows from chaining the conditionals together.

Modus Ponens (MP)

A logical argument form that asserts if "P implies Q" and "P is true," then "Q must also be true."

Modus Tollens (MT)

A logical argument form where the denial of the consequent leads to the denial of the antecedent, often structured as "If P, then Q. Not Q, therefore not P."

Disjunctive Syllogism (DS)

A form of logical argument where, from two disjunct statements, the denial of one leads to the affirmation of the other.