The Opportunity Cost of a Resource Should Be Considered in Project

question 70

Multiple Choice

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

• A) negative 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 or alternative use within the firm.

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Definitions:

Short-Lived

Describing something that lasts for a brief period of time.

Intense

A term describing a high degree of strength, concentration, or seriousness of something like emotions, situations, or activities.

Emotions

Complex psychological states that involve three distinct components: a subjective experience, a physiological response, and a behavioral or expressive response.

Lethargic

Describes a state of sluggishness, drowsiness, or lack of energy.